Coinbase Resumes Crypto Staking in South Carolina. More to Come?

Coinbase (COIN), a publicly traded cryptocurrency exchange, has resumed crypto-staking services in South Carolina after nearly two years of pause due to regulatory issues.

The dominoes keep falling. South Carolina just joined Vermont to dismiss its unfounded staking lawsuit against @Coinbase. Staking will very soon be back for Coinbase users in South Carolina. This is not just a victory for us, but for American consumers and we hope it’s a sign of…

— paulgrewal.eth (@iampaulgrewal) March 27, 2025

Staking Returns After Two Years

In June 2023, the United States Securities and Exchange Commission (SEC) claimed that Coinbase offered staking services without proper securities registration. At the time, South Carolina,  Wisconsin, California, and New Jersey took action against the crypto exchange. As a result, Coinbase had to halt staking services for retail users in those states.

However, the SEC has officially dropped the lawsuit, and South Carolina has also withdrawn its case against Coinbase over its staking services.

Kraken, another major crypto exchange, also faced similar problems. Around the same time the SEC probed Coinbase, Kraken was forced to halt its staking program after reaching a $30 million settlement with the securities regulator. The crackdown on staking services was part of a broader effort by regulators to enforce stricter rules on crypto companies. However, the crypto exchange resumed its staking service in the country shortly after Donald Trump’s inauguration as the U.S. president.

Meanwhile, South Carolina is moving further into cryptocurrency adoption by proposing a bill to create a Bitcoin reserve. If passed, the state would lead in using digital assets for public finances.

A Favorable Shift for Crypto?

The crypto space in the U.S. is changing. Under the Trump administration, there has been more support for cryptocurrency, with efforts to make the country a global leader in the crypto space. This has led to regulatory changes that favor companies like Coinbase and Kraken. These major exchanges’ return of staking services suggests that the regulatory environment is becoming more favorable for crypto businesses.

However, as regulatory conditions continue to evolve, Coinbase, Kraken, and other exchanges may be able to expand staking services further, making crypto widely accessible and offering investors new ways to grow their digital assets.