TLDR
- Coinbase has launched staking services for Ethereum and Solana in New York.
- New York regulators approved the service under Governor Kathy Hochul’s administration.
- Users in New York can now earn rewards in native tokens through Coinbase’s staking feature.
- Coinbase emphasized that staking does not qualify as a securities offering.
- Several states, including Illinois and Kentucky, have dropped stakeholder-related lawsuits.
Coinbase has officially launched staking services for New York residents, following approval from state regulators. This move allows users to earn yields on Ethereum (ETH) and Solana (SOL) holdings for the first time. New York’s policy shift now aligns it with other central states offering staking services through Coinbase.
Ethereum Staking Now Enabled for New Yorkers
Coinbase now allows New York users to stake Ethereum and receive native token rewards through its platform. The exchange confirmed that this update followed regulatory clearance under Governor Kathy Hochul’s administration. This decision removes a previous restriction that barred residents from earning staking rewards.
Legal pressure had previously forced Coinbase to pause staking in multiple states, including California and New Jersey. However, Coinbase has maintained that its staking service does not qualify as a security under federal law.
“The courts have consistently dismissed claims equating staking to securities,” stated Paul Grewal, Coinbase’s Chief Legal Officer.
A long-awaited win for our New York users – welcome to staking at Coinbase! Time for the remaining holdout states (CA, NJ, MD, and WI) to follow suit and join the other 46. Residents in those 4 states have missed out on an estimated $130M rewards. Let’s unfreeze staking. https://t.co/y2XIzdxpVw
— Ryan VanGrack (@RVanGrack) October 8, 2025
With Ethereum staking live in New York, Coinbase is expected to increase its market participation across decentralized networks. The platform continues to advocate for a clear federal framework. Grewal added that state-by-state enforcement has only created confusion and delays for the advancement of crypto innovation.
Solana Yields Now Offered Alongside Regulatory Progress
Coinbase’s support for Solana staking in New York marks a milestone as state-level scrutiny begins to ease. Several states, including Vermont and Kentucky, have dismissed legal actions against Coinbase’s staking operations. South Carolina’s withdrawal coincided with its proposed crypto investment legislation.
In August 2025, the SEC released guidance clarifying that liquid staking models, such as stETH, are not securities. This development provided critical clarity for platforms like Coinbase and staking-focused projects, such as Lido. Sam Kim of Lido Labs said, “This is the much-needed guidance the industry has waited for.”
Following the SEC update, institutional confidence in staking saw a notable increase. Grayscale introduced the first U.S. crypto ETFs with staking options, further legitimizing the practice. Coinbase’s participation in these trends underscores its commitment to leading the evolving staking market.
Coinbase Sees $130 Million Lost to Bans
Coinbase noted that users in California, New Jersey, Maryland, and Wisconsin have missed over $130 million in potential staking yields. These losses stem from ongoing staking bans still in effect across those jurisdictions. While Illinois, Kentucky, and Alabama dropped their suits, New Jersey and Washington State continue legal proceedings.
The approval in New York signals a potential shift that may influence other states to ease restrictions. Coinbase views this as a growing consensus that staking services should not face securities enforcement.
“We are encouraged by the momentum across multiple jurisdictions,” Grewal said.
