Coinbase Expands Crypto Staking to New York After Years of Regulatory Delays

State Greenlights Ethereum, Solana, Cosmos, and More as Coinbase Reaches 46-State Coverage

TL;DR:

• Coinbase finally launches crypto staking in New York after long-standing regulatory restrictions.
• New Yorkers can now stake Ethereum, Solana, Cosmos, Cardano, Avalanche, Polygon, and Polkadot, with yields up to 16% APY.
• The move follows major regulatory shifts and marks Coinbase’s re-entry into one of the country’s toughest crypto markets.

Coinbase has opened crypto staking to residents of New York, marking a major breakthrough for the exchange after years of being locked out by one of the strictest regulatory environments in the United States. The announcement, made on October 8, 2025, comes as part of Coinbase’s ongoing expansion of its staking program, which is now active in 46 states. Before New York’s approval, Coinbase’s staking service had been available in 45 states, leaving New York as one of the last holdouts due to its cautious stance on crypto products deemed high-risk.

Chief Executive Brian Armstrong described the development as “progress in NY,” celebrating the approval with a pointed remark aimed at regulators. “Glad to see progress in NY,” he wrote on X, formerly Twitter. “Staking services aren’t securities — hope all other states stuck in the past can drop their lawsuits and catch up soon … Happy staking, New Yorkers!” His comments referenced the broader regulatory tensions surrounding staking, an area that has drawn heavy scrutiny from both state and federal agencies.

The U.S. Securities and Exchange Commission’s lawsuit against Coinbase earlier this year had centered partly on its staking program, alleging that the company offered unregistered securities. That case was dismissed in February, clearing a major obstacle for Coinbase to resume expansion in key markets. The agency had accused Coinbase of facilitating trading in at least 13 tokens it considered securities, in addition to challenging its staking services. The resolution of that case appears to have paved the way for New York’s latest approval, with state regulators signaling a more cooperative approach toward compliant staking operations.

Coinbase users in New York can now stake Ethereum, Solana, Cosmos, Cardano, Avalanche, Polygon, and Polkadot directly through the platform. The yields vary significantly across assets, with Cosmos offering the highest return at over 16% annual percentage yield (APY) and Ethereum staking—by far the most popular option—returning around 1.9% APY. The company credited New York Governor Kathy Hochul’s administration for its “leadership in embracing progress and providing clarity,” suggesting that policy alignment at the state level played a role in approving Coinbase’s re-entry.

The launch arrives at a critical transition point for New York’s financial oversight landscape. Adrienne Harris, who served four years as Superintendent of the New York Department of Financial Services, recently announced her resignation. Harris had led several enforcement actions and settlements with crypto firms, including a $100 million deal with Coinbase in 2023 over compliance lapses in transaction monitoring and reporting. While the exchange has declined to comment on whether additional terms were negotiated to restore staking access in the state, the timing coincides with visible regulatory recalibration under new leadership.

For Coinbase, the reintroduction of staking in New York underscores the company’s determination to re-establish its full national footprint amid shifting political and regulatory tides. The exchange framed the move as restoring parity for New Yorkers who had been unable to participate in on-chain yield opportunities available elsewhere in the country. Coinbase’s Chief Legal Officer Paul Grewal emphasized the impact on users, noting that residents had “lost out on millions of dollars of staking rewards available to others” and that “it ends today.”

New York’s approval leaves only a few states—California, New Jersey, Maryland, and Wisconsin—where Coinbase staking remains unavailable. The expansion also coincides with broader institutional momentum in the sector: Grayscale recently introduced staking features in its Ethereum and Solana exchange-traded products, signaling rising comfort among U.S. regulators with staking models that meet transparency and compliance standards.

The development positions Coinbase as one of the few U.S.-regulated exchanges offering retail staking access across nearly the entire country. It also highlights the growing acceptance of staking as a legitimate yield-bearing mechanism rather than a speculative instrument. For the crypto industry, New York’s shift represents a critical signal that regulatory normalization around staking may be taking root after years of friction between digital asset companies and oversight agencies.

On October 9, 2025, Coinbase launched DEX trading for U.S. users, excluding New York, within its app, following an initial tease in August. This feature allows users to trade tokens not yet listed on the exchange, with integrations from liquidity pools supported by 1inch and 0x for secure, non-custodial swaps. Users can trade Base-native tokens from projects like Virtuals AI Agents and Super Champs. The launch comes amid a slight increase in trading volume, reported at $237 billion in Q2 2025, compared to $226 billion in the same quarter of 2024.

This article has been refined and enhanced by ChatGPT.