U.S. Regulation

New Yorkers Can Now Stake Ethereum, Solana, Cosmos and More on Coinbase

Coinbase announced Wednesday it has begun offering crypto staking services in New York, after years of carving the state out of its lucrative yield programs due to regulators’ objections. New Yorkers can now earn yield by staking deposits of Ethereum, Solana, Cosmos, Cardano, Avalanche, Polygon, and Polkadot on Coinbase. The most high-paying of those programs offers an estimated APY of over 16% on staked Cosmos. The company’s Ethereum staking program, by far its most popular, earns an estimated annual yield of 1.9%. 

“Thanks to Governor Hochul’s leadership in embracing progress and providing clarity, this milestone marks a meaningful step forward in ensuring residents of the Empire State have access to the same economic opportunities already open to most other Americans,” Coinbase said today in a statement. Coinbase has been attempting for years to get its staking services approved in New York, one of the U.S. states with the toughest crypto regulations. The exchange’s staking programs are now available in 46 states, including New York—but not California, New Jersey, Maryland, or Wisconsin, which all still limit the practice.

A representative of the New York Department of Financial Services, which regulates the state’s crypto industry, did not immediately respond to Decrypt’s request for comment regarding when a deal with Coinbase was reached on staking, or whether the crypto exchange had to fulfill any obligations to reach such an agreement. 

A Coinbase spokesperson declined to comment on the deal beyond what the company publicly announced earlier today. The milestone announcement from Coinbase comes just a week after Adrienne Harris, New York’s top crypto regulator, announced she was resigning after four years helming the state’s Department of Financial Services. In 2023, Harris scored a $100 million settlement with Coinbase over “significant failures” in the company’s compliance with state banking laws and transaction monitoring regulations.
Terron Gold

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