Coinbase has suspended access to its staking services in the US state of Maryland, according to an email sent to affected users November 2nd.
In a copy of the email shared by TheCryptoTengu.eth, Coinbase said affected users could no longer stake additional funds with immediate effect. The crypto exchange also said it will withdraw all funds, including any accrued rewards, staked by users after June 5. It said it will deposit these funds into users’ principal balances.
Coinbase said that users will nevertheless continue to earn rewards on any balance still being staked, although these rewards will not be re-staked. Users can also voluntarily request that their rewards not be staked at any time, Coinbase said.
The email shows that on June 6, the Maryland Securities Commissioner issued a preliminary cease and desist order regarding Coinbase’s staking services. In addition to that order, the agency also launched a broader case against Coinbase.
Coinbase noted that it was participating in discussions with the Maryland Securities Division and said it must now adjust its services as the case progresses.
Coinbase said it disagrees with Maryland’s position on its wagering services and noted that the order is not a final ruling. These statements imply that the crypto exchange could resume wagering services in Maryland in the future.
Ten state securities agencies are targeting Coinbase
Coinbase revealed in July that securities agencies in a total of ten states had initiated proceedings on June 6. Those states are Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin.
At the time of the announcement in July, Coinbase limited betting in four states: California, New Jersey, South Carolina and Wisconsin. However, the measures the company took at the time only prevented users in those states from deploying additional assets. Coinbase’s response to Maryland, on the other hand, also impacts existing funds.
The 10 state-level actions also coincide with a broader case brought by the U.S. Securities and Exchange Commission (SEC) on June 6 that concerns, in part, strike action.