I know in many ways this is old news to many, even if it is not so old, but a few weeks ago I suddenly noticed that my Coinbase account was once again offering staking option on multiple coins (rather than just USDC) and honestly I thought it was just something account specific to me - not saying I am special, but some kind of a reward programme for loyalty rather than something that is offered to everybody.

When Coinbase resumed broad staking services it caught me by surprise and when I looked into it I soon found that two major regulatory shifts were what made the difference, although this is only the first tier in what has changed in recent times.

The First Tier - Regulatory Shifts.

Firstly, new SEC guidance clarified in a pivotal statement in May 2025 that staking is not a securities offering, rather such rewards stem from technical participation, not entrepreneurial risk, which had previously triggered securities concerns. In other words they are rewards rather than further investment. This provided legal cover for platforms such as Coinbase to resume staking nationwide, especially for Proof-of-Stake networks like Ethereum, Solana, and Cardano.

Secondly state-level reforms like New York’s licensing framework and Kentucky’s pro-crypto legislation were game changing. In the midst of this Coinbase received a staking license under New York’s crypto framework, which mandates strict AML/KYC compliance and this approval marked a major milestone, allowing Coinbase to offer staking in one of the most tightly regulated U.S. markets. Additionally, Kentucky, Vermont, and South Carolina dismissed lawsuits against Coinbase over staking services in early 2025. Kentucky, went even further when it passed House Bill 701, a pro-crypto law that explicitly permits staking services under certain consumer protections and this was all part of  an overall trend that signaled a shift toward state-level acceptance, even though some states are still maintaining restrictions.

Coinbase is already ahead of the game and are actively pursuing a national trust charter which is seeking to bypass fragmented state laws and offer unified staking services across the U.S and by implication internationally. If Coinbase are too succeed it will allow them to act as a federally regulated custodian, streamlining staking operations and compliance.

One thought is that this sounds very centralised - thoughts anybody?

The Second Tier - A More Competitive Platform

Moving on, Coinbase has obviously also expanded their staking rewards programme to stay competitive, attract more users, and capitalise on the growing demand for passive income in crypto. Rival platforms such as Kraken, Binance, and Lido already offer broad staking options and so the onus is on Coinbase to catch up otherwise it will struggle to retain and grow its user base. Furthermore by offering staking on a broader range of assets, Coinbase becomes a one-stop shop for both trading and passive income.

This all comes against a backdrop of a rising demand for passive income, namely high-interest (at least inflation beating) yield-bearing assets. This of course mimics (and is the crypto equivalent of) interest on traditional savings within the banking system. Coins with strong ecosystems and consistent returns, such as Ethereum (ETH), Cardano (ADA), Solana (SOL), and Polkadot (DOT) are  particularly popular for staking.

Staking represents greater diversification in its revenue stream which in turn increases Coinbase's profitability. Staking provides a more stable revenue source as trading volumes  can be unpredictable and fluctuate. Coinbase take something in the range of 10–35% of user rewards.

I must be honest when I came across this I was shocked but I have no point of comparison on other staking platforms and would appreciate any enlightenment from the P0x community.

So to summarise, Coinbase are just taking advantage of the updated regulations to maximise and improve their business model, which to be honest while probably the most secure one out there is also the greediest in terms of what it keeps in relationship to the returns it provides for its users. Staking, while rewarding users is clearly part of their profit at any price business models.

Personally I have made some adjustments to my portfolio to take advantage, for example I have moved a significant amount of staking generated USDC into other assets that stake at a higher price.

How has Coinbase's return to broad staking affected your strategy?

As always stay safe and well my friends.