Coinbase CLO Calls Out Five U.S. States for Defying CLARITY Act on Crypto Staking

Coinbase Chief Legal Officer Paul Grewal has publicly criticized five U.S. states—California, New Jersey, Washington, Maryland, and Wisconsin—for continuing legal actions against crypto staking services, despite the CLARITY Act's clear stance that staking-as-a-service is not a security. The bipartisan-supported legislation, passed last month, was designed to provide regulatory clarity for the crypto industry, but these states are pursuing claims against Coinbase, directly contradicting the federal law. Grewal's remarks highlight the ongoing tension between state and federal regulators in the rapidly evolving cryptocurrency landscape. This development underscores the challenges faced by crypto businesses navigating inconsistent regulatory frameworks across different jurisdictions. The situation also raises questions about the future of staking services in the U.S. and the need for harmonized regulations to foster innovation while protecting investors.

Coinbase CLO Exposes 5 U.S. States for Defying CLARITY’s Crypto Staking Rules

Coinbase Chief Legal Officer Paul Grewal has publicly criticized five U.S. states for continuing legal actions against crypto staking services, despite the CLARITY Act's clear stance that staking-as-a-service is not a security. The states—California, New Jersey, Washington, Maryland, and Wisconsin—are pursuing claims against Coinbase, directly contradicting the bipartisan-supported legislation passed last month.

Grewal emphasized the absurdity of the situation, noting that 32 Democratic lawmakers from these same states voted for the CLARITY Act. The disconnect between state regulators and federal lawmakers has sparked frustration within the crypto industry, as the legal uncertainty undermines progress toward regulatory clarity.

Charles Schwab Enters Crypto Market with Spot Bitcoin and Ethereum Trading

Charles Schwab, managing $10.7 trillion in client assets, is preparing to launch spot trading for Bitcoin and Ethereum. CEO Rick Wurster confirmed the move, positioning Schwab as a competitor to Coinbase. The brokerage aims to consolidate client assets—stocks, bonds, and now crypto—under one trusted platform.

Schwab clients already hold over 20% of the crypto ETP market, yet crypto represents just $25 billion of its $10.8 trillion assets. The firm sees spot trading as a growth catalyst. Regulatory clarity, including the GENIUS Act for stablecoins, has eased institutional entry into crypto.