Coinbase Bleeds $90M in Staking Revenue After State Crackdowns—Regulators ’Protect’ Investors Straight Into Revenue Losses
State-level bans on crypto staking just cost Coinbase a staggering $90 million in rewards—proof that regulators would rather kill revenue streams than understand them.
When bureaucrats play whack-a-mole with innovation, exchanges pay the price. Now watch those lost millions quietly migrate to offshore platforms.
Bonus jab: Nothing secures your financial future like government-mandated opportunity destruction.
Over $90 million in staking rewards have been lost due to the staking ban
Meanwhile, VanGrack focused on the states that still have pending cease and desist orders against Coinbase’s staking, noting that they are only harming consumers. Four states, California, Maryland, Wisconsin, and New Jersey, currently have that.
He wrote:
“All but one (Washington) are enforcing cease-and-desist orders that have already cost residents tens of millions of dollars in missed staking rewards, while limiting consumer choice and increasing regulatory uncertainty.”
The executive noted that a strict order such as this is usually used only for emergency cases, such as Ponzi schemes, and not for normal products, such as Coinbase staking. He further highlighted what makes Coinbase a top staking service provider, including its safety and compliance records.
Interestingly, the exchange said that the war on staking is costing US residents. VanGrack claimed that an estimated $90 million in staking rewards have been lost by residents in the four states due to the ban, and it will continue to increase if the states do not drop their cases.
He added that the ban also singles out Coinbase among all staking service providers, which means that the state is picking winners and losers. This move could force consumers to use staking platforms with less regulatory oversight and put them at higher risk, he argued.
Coinbase pressures regulators to become pro-crypto
Meanwhile, the Coinbase article is just one of the many advocacy efforts that the exchange has made over the past few months. The exchange has grown bolder and stronger in its push for regulatory clarity since President Trump was elected.
It is currently involved in a lawsuit against the Federal Deposit Insurance Corporation (FDIC) over the impact of its crypto debanking efforts, and recently wrote to the Office of Government Ethics (OGE) to allow SEC users to hold and use crypto, so they can better understand what they are regulating.
The exchange is also reportedly launching a campaign against the four states that have banned staking, with plans to emphasize the losses due to the ban and lawsuits.
Coinbase’s pro-crypto advocacy is unsurprising, given that it is one of the biggest beneficiaries of regulatory clarity. Although its COIN stock is down 15.57% this year, the firm continues to see increased adoption as the crypto market grows stronger.
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