Ethereum News Today: Coinbase Launches Staking in New York After Overcoming Regulatory Hurdles

Coinbase has launched crypto staking services for New York residents, enabling them to earn rewards on assets such as Ethereum (ETH), Solana (SOL), and others following regulatory approval from state authorities. The move, announced on October 8, 2025, marks a significant expansion for the exchange, which now offers staking in 46 U.S. states. New Yorkers can stake ETH, SOL, Cosmos (ATOM), Cardano (ADA), Avalanche (AVAX), Polygon (MATIC), and Polkadot (DOT), with annual percentage yields (APY) ranging from 1.9% on ETH to over 16% on ATOM . Coinbase cited New York Governor Kathy Hochul's administration for providing "clarity" and facilitating the approval, emphasizing that the service is now available to residents who had previously been excluded from staking opportunities due to state-level restrictions .

The regulatory approval follows years of legal and policy challenges. In 2023, ten states, including New York, filed lawsuits against Coinbase over its staking services, alleging violations of securities laws. However, authorities in South Carolina, Alabama, Kentucky, Vermont, and Illinois dropped their cases this year, reflecting a broader shift in regulatory approaches . The U.S. Securities and Exchange Commission (SEC) also dismissed its federal lawsuit against Coinbase in February 2025, a decision that coincided with New York's approval. Coinbase reiterated that staking-as-a-service does not constitute a security, citing recent SEC staff guidance clarifying that protocol staking activities are not securities transactions . This regulatory clarity has been pivotal in enabling Coinbase's nationwide expansion, as the company highlighted that residents in California, New Jersey, Maryland, and Wisconsin have collectively missed over $130 million in staking rewards due to ongoing bans in those states .

The launch of staking in New York aligns with broader industry trends. Grayscale recently introduced staking capabilities for its Ethereum and Solana exchange-traded funds (ETFs), while competitors like Kraken and eToro have also expanded staking offerings in the U.S. . Coinbase's Chief Legal Officer, Paul Grewal, emphasized the economic impact of the approval, stating that New Yorkers had previously "lost out on millions of dollars of staking rewards available to others" . The company also noted that its staking services are custodial, with Coinbase holding users' assets on their behalf, a model that prioritizes convenience and security for retail investors . However, the exchange acknowledged the trade-off between custodial control and non-custodial alternatives, which allow users to retain full ownership of their assets through decentralized platforms.

Coinbase's expansion into New York underscores its strategy to normalize staking as a legitimate financial tool. CEO Brian Armstrong described the approval as a "big win" for New Yorkers and a step toward "equal access to the future of finance" . The company has called on remaining states-California, New Jersey, Maryland, and Wisconsin-to reconsider their restrictions, arguing that staking bans hinder economic opportunities. Meanwhile, the SEC's August 2025 guidance on liquid staking further supports industry growth, potentially accelerating institutional adoption of staking products . Analysts suggest that New York's regulatory shift could signal a broader normalization of crypto staking in the U.S., particularly as more states adopt frameworks that balance investor protection with innovation.

Coinbase's re-entry into New York's market also follows significant regulatory settlements. In 2023, former New York Department of Financial Services Superintendent Adrienne Harris secured a $100 million settlement with Coinbase over compliance lapses, though the company declined to comment on whether additional terms were negotiated for staking approval . With Harris's recent resignation and new leadership in place, the state appears to be recalibrating its approach to crypto regulation. As Coinbase continues to push for federal legislation to standardize staking rules, the company's success in New York highlights the growing acceptance of crypto as a mainstream financial asset, despite lingering legal uncertainties in other jurisdictions.

Source: [1] Cointelegraph (https://cointelegraph.com/news/coinbase-staking-new-york-residents)

[2] Decrypt (https://decrypt.co/343394/coinbase-crypto-staking-new-york-state-regulators)

[3] Yahoo Finance (https://finance.yahoo.com/news/coinbase-staking-goes-live-york-172028317.html)

[4] TheStreet (https://www.thestreet.com/crypto/business/new-york-can-now-stake-on-coinbase)

[5] Cryptonews.com (https://cryptonews.com/news/coinbase-launches-staking-in-new-york-after-state-approval-eth-and-sol-yields-now-available/)

[6] Coin360 (https://coin360.com/news/coinbase-staking-new-york-approval-2025)

[7] Gadgets360 (https://www.gadgets360.com/cryptocurrency/news/coinbase-to-launch-crypto-staking-services-in-usa-new-york-crypto-regulation-9425001)

[8] Cryptonomist.ch (https://en.cryptonomist.ch/2025/10/09/coinbase-wins-new-york-approval-for-crypto-staking-ethereum-and-solana-staking-now-available/)

[9] Eblockmedia (http://www.eblockmedia.com/news/articleView.html?idxno=29637)