Coinbase begins crypto staking in New York due to agreement with state regulators

Coinbase announced Wednesday that it has begun offering cryptocurrency staking services in New York after years of cutting the state out of its lucrative yield program due to regulatory opposition.

New Yorkers can now earn yield by staking their Ethereum, Solana, Cosmos, Cardano, Avalanche, Polygona, and Polkadot deposits on Coinbase. The most expensive of these programs offers an estimated 16%+ APY on staked Cosmos. The company’s Ethereum staking program is by far the most popular, with an estimated annual yield of 1.9%.

““Thanks to Governor Hochul’s leadership in embracing progress and providing clarity, this milestone marks meaningful progress in ensuring Empire State residents have access to the same economic opportunities already open to most other Americans,” Coinbase said in a statement today.

Coinbase has been trying for years to get approval for its staking service in New York, one of the most restrictive states in the United States. Cryptocurrency regulations. The exchange’s staking program is currently available in 46 states, including New York, but is still restricted and unavailable in California, New Jersey, Maryland, and Wisconsin.

A representative for the New York State Department of Financial Services, which regulates the state’s cryptocurrency industry, did not immediately respond. decryptionA request for comment regarding when an agreement was reached with Coinbase regarding staking, or whether the cryptocurrency exchange was required to perform any obligations in order to reach such an agreement.

A Coinbase spokesperson declined to comment beyond what the company has said publicly about the transaction. announced In the early hours of today.

The groundbreaking announcement from Coinbase comes just a week after Adrian Harris, New York’s head of crypto regulation, announced that: resign After four years at the helm of the state Department of Financial Services.

Harris will earn $100 million in 2023 settlement It filed a lawsuit against Coinbase over the company’s “material failure” to comply with state banking laws and transaction monitoring regulations.