Cryptocurrency exchange Coinbase is calling for an end to the remaining state lawsuits that target the company's staking services, arguing the holdouts need to "catch up" with the approach at the Securities and Exchange Commission (SEC).

Coinbase, in a blog post first reported by The Hill on Friday, claimed residents in five U.S. states are missing out on tens of millions of dollars in staking rewards as a result of the states' ongoing litigation against the exchange.

"It’s time for these states to catch up with the SEC—and nearly every other state—and drop their unfounded cases," wrote Ryan VanGrack, Coinbase's vice president of legal and head of global litigation.

Ten states and the SEC sued Coinbase in June 2023, alleging the country's largest crypto exchange violated securities laws through its staking program.

Crypto staking involves temporarily locking up a certain amount of cryptocurrency to participate in a blockchain network. In exchange, users of trading platforms receive rewards, usually in the form of tokens, somewhat like interest rates in a savings account.

The process supports Coinbase's operations through validating transactions and securing the network, VanGrack explained. He noted this can be a technically complex process and Coinbase offers specific infrastructure to simplify it for users.

The SEC and 10 states' suits alleged Coinbase failed to register its staking services as securities, though the exchange maintains its staking services are not........

© The Hill