Coinbase Users Lose $90 Million in Staking Rewards Due to State Restrictions

Coinbase has disclosed that regulatory actions in several U.S. states have resulted in its users missing out on $90 million in staking rewards. The exchange attributes these lost earnings to ongoing legal challenges against its staking services. Coinbase is now advocating for states like California, New Jersey, Maryland, Wisconsin, and South Carolina to align with the SEC’s recent stance, which dropped enforcement actions earlier this year. This development highlights the growing tension between cryptocurrency platforms and state regulators, underscoring the need for clearer regulatory frameworks to protect user interests and foster innovation in the digital asset space.

Coinbase Users Lose $90 Million in Staking Rewards Due to State Restrictions

Coinbase revealed that regulatory actions in several U.S. states have deprived its users of $90 million in staking rewards. The exchange attributed these missed earnings to ongoing legal challenges against its staking services.

The platform is now pushing back, urging California, New Jersey, Maryland, Wisconsin, and South Carolina to align with the SEC’s stance. Earlier this year, the SEC dropped its enforcement action against Coinbase’s staking operations, prompting states like Illinois, Kentucky, and Alabama to abandon similar restrictions.

Coinbase CISO Discusses Scam Prevention as Users Lose $300M Annually

Coinbase Chief Information Security Officer Jeff Lunglhofer reveals the mechanisms behind rising social engineering scams targeting exchange users. First-quarter 2025 data shows escalating sophistication in attacks, with blockchain investigator ZachXBT documenting multiple cases of drained Coinbase accounts.

The centralized exchange leader faces mounting pressure as criminals exploit psychological vulnerabilities rather than technical flaws. "We’re seeing threat actors weaponize urgency and authority cues," Lunglhofer noted, describing how impersonation tactics bypass traditional security measures.

Top 3 Low Market Cap Tokens to Watch in May 2025

ZORA, riding the viral Content Coins trend, gained significant traction following its Coinbase listing. Meanwhile, HOUSE skyrocketed over 250% within a single day, capturing trader attention.

Dragonchain (DRGN), a hybrid blockchain platform initially developed by The Walt Disney Company in 2014, resurged with a 115% price jump after the SEC dropped its 2022 lawsuit. The token, which once boasted a $1.3 billion market cap, now eyes key resistance levels at $0.090 and $0.107—potentially reclaiming 2021 highs if momentum sustains.

Market sentiment remains cautiously optimistic, though a pullback to $0.044 remains possible if buying pressure wanes. The project’s enterprise-focused architecture continues to attract speculative interest amid renewed regulatory clarity.