Coinbase Expands Ethereum (ETH) and Solana (SOL) Staking Services in New York Following Regulatory Green Light

Coinbase, the largest cryptocurrency exchange in the United States, has officially launched staking services for Ethereum (ETH) and Solana (SOL) in New York. This milestone follows approval from New York financial regulators, marking a significant step forward in expanding staking services within a highly regulated state.

Ethereum and Solana Staking Opportunities for New York Users

On October 9th, Coinbase announced that residents of New York can stake Ethereum and Solana directly through its platform. This is the first time staking services have been permitted in the state after years of regulatory deliberation.

Staking, a popular mechanism in blockchain networks, enables users to lock their digital assets into a network to support its operations, validate transactions, and earn rewards in return. Coinbase expressed gratitude to New York Governor Kathy Hochul, acknowledging her efforts to foster innovation and regulatory clarity. The platform emphasized that this initiative provides a legal avenue for New York residents to earn rewards by participating in blockchain staking activities.

Regulatory Challenges and Shifts

Coinbase’s journey toward offering staking services has not been without obstacles. Throughout 2023, the company faced lawsuits from multiple states alleging its staking products violated securities laws. These legal challenges were part of broader uncertainty surrounding how digital asset staking aligns with securities regulations.

Significant changes began emerging after Donald Trump’s election victory in 2024, which ushered in a more lenient regulatory environment. States such as South Carolina, Alabama, Kentucky, and Illinois have dropped lawsuits against Coinbase, signaling a gradual shift in attitudes toward staking.

In its latest announcement, Coinbase criticized the impact of restrictive state-level bans on staking. The company disclosed that residents of states like California, New Jersey, Maryland, and Wisconsin missed out on more than $130 million in staking rewards—or approximately 184.5 billion won—due to these prohibitions. Coinbase described the missed opportunities as a substantial loss of income for local families and communities.

The Trump Administration’s Role in Digital Asset Regulation

The Trump administration has played a key role in advancing regulatory clarity within the cryptocurrency space. To prevent blockchain projects and digital asset firms from moving offshore, the administration has actively worked to reduce institutional barriers surrounding staking. These efforts aim to make the United States a more favorable jurisdiction for blockchain innovation.

Gradual Adoption of Staking-Based Financial Products

The approval of staking services in New York also signals a wider acceptance of staking products by U.S. financial regulators. Asset management firms across the country have been steadily incorporating staking functionalities into their offerings.

Grayscale, a major player in the industry, recently enabled staking capabilities within its Ethereum-based Exchange-Traded Fund (ETF), creating the first ETF in the U.S. to permit staking. Grayscale is now awaiting approval to introduce similar functionalities for its Solana ETF.

Other asset management firms, including Franklin Templeton, CoinShares, Bitwise, Fidelity, Cannary, and VanEck, are also anticipating regulatory decisions within the next two weeks regarding Solana-focused ETFs with staking capabilities.

Despite these promising developments, regulatory oversight around staking services remains an ongoing process. For instance, the U.S. Securities and Exchange Commission (SEC) recently delayed its decision on approving staking-related functionalities for an Ethereum-based ETF.

Turning Point for Staking Regulations

Coinbase’s ability to launch staking services in New York underscores a significant evolution in U.S. digital asset regulation. Industry experts view this approval as a potential catalyst for broader institutional interest in staking, as regulatory clarity continues to improve. According to analysts, this milestone could encourage institutional investors to participate more actively in blockchain staking ecosystems, further legitimizing the sector as an investment class.

As the U.S. regulatory framework evolves, New York’s endorsement of staking services may set a precedent for other states to follow, driving greater adoption of crypto staking both among individual users and institutional entities.