Millions of people all over the country are earning rewards by staking crypto through Coinbase. But not in Maryland. As one of only four states to ban staking through Coinbase, Maryland is actively working against its residents’ economic interests. Since the ban, Marylanders have already missed out on more than $8 million in staking rewards.
Staking is a way for crypto owners to help validate transactions and secure the blockchain by temporarily locking up a certain amount of cryptocurrency. In return, they receive rewards, usually more crypto. It’s an easy, safe way to earn passive income while strengthening the integrity of the system. It’s not a security – your crypto is never lent out, and no customer has ever lost crypto by staking through Coinbase.
In 2023, the U.S. Securities and Exchange Commission and ten states sued Coinbase under the incorrect assertion that our staking services were securities. Several other states took it even further – Maryland issued a summary cease-and-desist order only against Coinbase, preventing users from staking new assets. Since then, the SEC and all but five states dropped their cases. Meanwhile, residents in Maryland have missed out on an estimated $8M+ in staking rewards, and counting.
$8M in staking rewards, missed.
Coinbase is the most trusted digital assets platform in the United States. By banning our staking services, Maryland is disadvantaging its residents in a number of ways, including:
It’s time for AG Brown to stop punishing Maryland consumers, and to drop the lawsuit against Coinbase.