Why is crypto staking not available in some US states?

Staking is not available in some US states because state securities regulators have said exchange staking programs are securities that must be registered before they are sold. As of October 2026, Coinbase lists four restricted states: California, Maryland, New Jersey and Wisconsin. Robinhood's help page names the same four. Staking itself is not illegal in those states. The restriction is on platforms offering it as a service.

Why is staking not allowed in California?

On June 6, 2023, the same day the SEC sued Coinbase, a group of states took action over its staking program. Decrypt reported that regulators in ten states, including California, Maryland, New Jersey and Wisconsin, issued orders asking Coinbase to show why it should not stop. California's financial regulator estimated Coinbase had been offering unregistered securities since as early as November 2019. The New Jersey release said the multistate investigation was led by California.

Coinbase says assets staked on or after June 6, 2023 in the restricted states are being unstaked. Customers who staked earlier can keep earning rewards, but no new staking is allowed and rewards are not restaked. Customers can unstake at any time. How long that takes is covered in how long unstaking takes.

Why is staking not allowed in NJ?

New Jersey's Bureau of Securities issued a summary cease and desist order on June 6, 2023, assessing a $5 million penalty. It said Coinbase sold unregistered securities through its staking program. The bureau said registration would give investors the information they need to weigh risks. It noted that about 145,270 New Jersey residents had staking accounts in March 2023 and that these were not covered by FDIC or SIPC insurance. The order did not ban staking, as long as Coinbase complied with state law.

Why have other states allowed staking again?

Several states dropped their cases after federal policy shifted. The SEC dismissed its own lawsuit against Coinbase in February 2025, and Vermont, South Carolina and Kentucky dropped staking claims by April 2025, The Block reported. By October 2026, Coinbase says only California, Maryland, New Jersey and Wisconsin still prohibit staking through its platform.

In May 2025, SEC staff said certain protocol staking activities, including staking-as-a-service, are not securities transactions. That is a staff view, not a rule, and it does not decide how states apply their own securities laws. The wider debate is in is crypto a security.

Why was staking not allowed in New York?

New York was not one of the states in the June 2023 action, and Coinbase had not offered staking there. In October 2025, Coinbase switched on staking for New York residents after state approval, Cryptonews reported, covering ETH, SOL and other assets. Coinbase's current eligibility page does not list New York as restricted. For how staking works, see what is crypto staking, and for licensing differences by state, see state crypto licenses.

Rules differ by country, and in the US by state, and change often. Check the state regulator or a qualified professional for your own situation.