Coinbase has announced that crypto staking is once again available in New York, marking a major milestone following its earlier dispute with the U.S. Securities and Exchange Commission. The update extends access to staking across 46 U.S. states, allowing millions of users to earn rewards by supporting blockchain networks.
According to Brian Armstrong, the return of staking in New York shows steady progress for the digital asset industry. He stated that staking services are not securities and encouraged states such as California, Wisconsin, New Jersey, and Maryland to align with recent regulatory clarity.
Armstrong explained that staking strengthens blockchain security while allowing users to earn passive income. His comments came as Coinbase continues to rebuild trust with regulators after the SEC’s decision to withdraw its lawsuit against the company earlier this year.
Glad to see progress in NY. Staking services aren’t securities – hope all other states stuck in the past can drop their lawsuits and catch up soon (CA, WI, NJ, MD).
Happy staking, New Yorkers! https://t.co/K8oUunzpXM
— Brian Armstrong (@brian_armstrong) October 8, 2025
Coinbase Strengthens Market Position After SEC Withdrawal
The SEC had previously alleged that Coinbase facilitated trading in unregistered securities and operated an unregistered staking program. The agency later dropped the lawsuit, which was seen as a major legal victory for the exchange and the wider crypto community.
This resolution paved the way for Coinbase to expand its services into previously restricted regions. The return of staking in New York underscores the exchange’s efforts to comply with regulations while maintaining accessibility for users in strict regulatory environments.
Digital asset manager Grayscale also announced that staking has been added to its Ethereum and Solana products. The firm confirmed that its Ethereum Trust ETFs and Solana Trust now feature staking, pending final approval, making them among the first U.S.-listed crypto products with this feature.
Regulatory Approval Marks a New Phase for New York Crypto Market
Coinbase said residents of New York can now stake cryptocurrencies such as Ethereum and Solana after receiving authorization from state regulators. The approval restores access to staking for millions of users and marks a major shift in one of the nation’s most closely monitored crypto markets.
The company credited Governor Kathy Hochul’s administration and the New York Department of Financial Services for providing regulatory clarity that made the relaunch possible. This decision reflects a softening stance toward staking services that were once viewed as securities‑related.
Coinbase has also won several state‑level legal challenges, reinforcing its position that staking‑as‑a‑service is not a security. The exchange estimates that ongoing restrictions in California, New Jersey, Maryland, and Wisconsin have cost residents over $130 million in unrealized staking rewards.