On October 9, 2025, New York residents gained access to a significant financial tool, as Coinbase announced it can now offer crypto staking services in the state. This development marks a pivotal shift in one of the nation’s most stringent regulatory landscapes, providing a licensed pathway for investors to earn rewards on their digital assets.
A Groundbreaking Approval in a Strict Market
New York’s approval is a landmark event for the crypto industry. The move, attributed by Coinbase to Governor Hochul’s leadership in “embracing progress and providing clarity”, effectively ends a period where New Yorkers were excluded from the economic opportunities offered by staking. This decision establishes a regulated framework for staking within the state, which is known for its rigorous oversight of cryptocurrency through its BitLicense regime.
This green light from New York stands in stark contrast to the ongoing situation in several other states. As of now, California, Maryland, New Jersey, and Wisconsin continue to enforce restrictions that prevent Coinbase from offering staking services to their residents. Coinbase estimates these state-level bans have collectively cost users over $100 million in missed staking rewards since June 2023, underscoring the real-world financial impact of the fragmented U.S. regulatory approach.
Understanding Staking and Its Value Proposition
For the uninitiated, staking is a process that allows cryptocurrency holders to participate in securing and operating a proof-of-stake blockchain network. By temporarily locking up their assets, users help validate transactions and maintain the network’s security. In return, the network rewards them with more of its native tokens, creating a way to earn yield on existing holdings.
Coinbase simplifies this technical process through its staking-as-a-service model. The company runs the validators and handles the complex operations, allowing users to earn rewards by simply holding supported assets on its platform. For this service, Coinbase charges a commission, typically around 25-35% of the rewards earned.
Initially, New Yorkers can stake major assets like Ethereum (ETH) and Solana (SOL) directly through Coinbase’s platform. It is crucial for users to understand that staking involves locking their coins for a period. Unstaking is not instantaneous; for example, Ethereum requires a waiting period of approximately 59 days to unlock staked funds, a key risk consideration during market volatility.
Navigating Risks and the Regulatory Road Ahead
While New York’s approval is a major step forward, it does not erase the inherent risks and broader regulatory uncertainty. Participants should be aware of a few critical factors:
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Technical Risks: On the network level, validators can be penalized through “slashing”, where a portion of their staked assets is lost for failing to validate correctly, though Coinbase states no user has ever lost assets through its staking services.
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Regulatory Landscape: The broader “war on staking”, as Coinbase terms it, is not fully over. While the SEC has dropped its lawsuit against Coinbase, the legal status of staking is still being debated, and future shifts in federal policy or tax treatment remain a possibility.
New York’s move signals a growing acceptance of regulated crypto services and provides a template other states may follow. For now, it offers residents a trusted and compliant way to put their digital assets to work, turning the city that never sleeps into a place where their crypto doesn’t have to sleep, either.
