Coinbase opens crypto staking to New York residents

Coinbase has flipped the switch on staking for one of its most crucial markets, a move that signals growing regulatory acceptance and directly challenges the stance of remaining holdout states like California and Oregon.

Summary

• Coinbase secured regulatory approval to launch crypto staking in New York, enabling users to earn rewards on assets like ETH and SOL.
• The decision signals growing state-level acceptance and contrasts with bans still active in states such as California and Oregon.
• Recent SEC guidance and multiple state case dismissals highlight a shifting national consensus on staking-as-a-service compliance.

On Oct. 8, Paul Grewal, the Chief Legal Officer of Coinbase, announced that the exchange had received the necessary regulatory approvals to activate staking services for New York residents.

The move, effective immediately, allows users in the state to stake major assets like Ether (ETH) and Solana (SOL) directly through the platform. In his statement, Grewal credited Governor Kathy Hochul’s administration for providing the regulatory clarity that made the landmark decision possible.

Regulatory clarity meets real-world stakes

In his announcement, Grewal framed the New York approval as a powerful argument against restrictive policies elsewhere. He pointed to internal Coinbase estimates suggesting residents in California, New Jersey, Maryland, and Wisconsin have collectively missed out on more than $130 million in staking rewards due to ongoing state-wide bans.

This figure, he argued, represents tangible financial harm to families and communities being excluded from a core function of the modern digital asset ecosystem. The approval also comes at a pivotal moment for regulatory interpretation.

Grewal cited recent SEC staff guidance confirming that staking-as-a-service, when structured transparently, does not constitute a securities offering. The update aligns with a broader pattern of state-level reversals: Vermont, Illinois, Kentucky, Alabama, and South Carolina have all dismissed their cases against Coinbase this year, suggesting a quiet consensus is forming around how staking can coexist with compliance.

Coinbase growth and momentum

The New York staking milestone arrives as Coinbase continues to build momentum on multiple fronts. The company recently applied for a National Trust Company Charter, seeking to deepen its role as a bridge between crypto and traditional finance.

Simultaneously, a landmark integration embeds Coinbase services directly into the Samsung Wallet on 75 million Galaxy devices in the U.S., placing its tools in the hands of tens of millions of new potential users.

This strategic expansion is reshaping how institutional investors view the company. Thanks to this diversified growth, financial institution Rothschild & Co. recently upgraded Coinbase stock to a “Buy,” with a $417 price target. 

Rothschild’s analysis contends the market still misprices Coinbase as a simple proxy for Bitcoin’s price, overlooking a fundamental business model shift where revenue is increasingly driven by services like staking, USDC income, and its Base network, rather than just retail trading fees.