Following regulatory approval, Coinbase has launched its crypto staking services in New York, enabling residents to stake their digital assets. This move is a significant win for New Yorkers, granting them access to economic opportunities available to many other Americans.

Staking allows users to earn rewards by participating in the validation of blockchain transactions. By staking their crypto, users help secure blockchain networks. In return, they receive more of the network's tokens. New York residents can now earn rewards on assets like ETH and SOL directly through Coinbase's platform.

Coinbase views New York's approval as a positive sign, suggesting that restricting financial opportunities for residents is not beneficial. They hope this development will encourage other states to reconsider their stance on crypto staking. Coinbase estimates that residents in California, New Jersey, Maryland, and Wisconsin have missed out on over $130 million in staking rewards due to state-wide bans.

Several states had previously sued Coinbase, alleging that its staking services violated securities laws. However, cases were dismissed in South Carolina, Alabama, Kentucky, Vermont, and Illinois. Coinbase argues that its staking-as-a-service model is not a security because it facilitates network participation without pooling customer assets for profit. Recent SEC staff guidance also supports this view.

Coinbase CEO Brian Armstrong reacted to the New York milestone, reiterating that staking services should not be classified as securities. He hopes that past lawsuits in other states will be dropped, paving the way for further development and access to staking.