Coinbase limits staking service for retail customers in four states

(Reuters) – Coinbase retail customers in California, New Jersey, South Carolina and Wisconsin will not be able to pledge new cryptocurrency to the exchange’s staking program pending proceedings initiated by states last month challenging the service, Coinbase said in a blog post on Friday.

Any cryptocurrencies that users in those states had staked before the orders were issued on June 6 are unaffected, Coinbase said.

Ten states accused Coinbase in June of violating state securities laws through its staking program, which allows cryptocurrency holders to lock up certain assets for a certain period of time in exchange for a return. .

(Reporting by Hannah Lang in Washington)

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