News View Non-AMP

Coinbase CLO Exposes 5 U.S. States for Defying CLARITY’s Crypto Staking Rules

Published by
Zafar Naik and Qadir AK

Coinbase CLO Paul Grewal is making his frustration clear.

In a direct post on X, he called out five U.S. states for pushing forward with legal action against crypto staking, even after Congress passed a bill that says staking-as-a-service is not a security.

“I gotta call out one critical provision of CLARITY Act that hasn’t received the attention it is due: staking-as-a-service is confirmed as a non-security and rule-making is ordered,” Grewal wrote.

The law he’s referring to is the CLARITY Act, which passed the House last month with strong bipartisan support. It clearly states that staking services offered by crypto platforms should not be treated as securities, which is a big deal for the industry.

Five States Under Fire

Despite that clarity, California, New Jersey, Washington, Maryland, and Wisconsin are still pursuing claims against Coinbase over its staking services. Grewal says these actions directly ignore the law and what’s more, he points out that 32 Democratic lawmakers from those same states actually voted for the CLARITY Act.

That contradiction is what’s fueling frustration. According to Grewal, these state regulators are acting as if the bill never passed

This Patchwork Approach Can’t Continue

The bigger issue, Grewal explains, is the ongoing lack of coordination between state and federal regulators. While Congress is pushing forward with clearer crypto rules, some states are still using outdated or unclear laws to take enforcement action.

“It’s time to end this patchwork of state regulation by enforcement and align with Congress on clear, bipartisan crypto rules,” Grewal said, adding that he hopes the Senate will move quickly to finish what the House started.

Coinbase Steps Up Lobbying

This statement comes as Coinbase intensifies its efforts in Washington. The exchange recently brought in David Plouffe, a former adviser to Kamala Harris and Barack Obama, to join its advisory board. The goal: influence key lawmakers and push for fair crypto regulation.

Coinbase has long called for clear rules. With the CLARITY and GENIUS Acts gaining momentum, the platform is now urging lawmakers to finish the job, especially when it comes to staking.

What’s Next for Staking?

The CLARITY Act gives staking services some long-awaited relief. But until the Senate acts, and until state regulators get on the same page, the legal battles may continue.

What Grewal wants for now is that regulators respect what Congress has already decided.

FAQs

What is the CLARITY Act’s stance on crypto staking?

The CLARITY Act confirms that staking-as-a-service is not a security, providing legal protection for crypto staking platforms.

Why did Coinbase hire David Plouffe?

Coinbase hired David Plouffe to strengthen its lobbying efforts and push for clear, fair crypto regulation at the federal level.

Zafar Naik and Qadir AK

Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

Recent Posts

SEC Filings Show Harvard and Brown Universities Bought Bitcoin Via BlackRock’s IBIT in Q2

The mainstream adoption of BlackRock’s iShares Bitcoin Trust (IBIT) has proliferated Ivy League Universities, led…

August 9, 2025

BlackRock Has No Immediate Plans for a Spot Solana and XRP ETFs

BlackRock Inc. (NYSE: BLK) has no immediate plans to file for a spot Solana (SOL)…

August 9, 2025

Aerodrome Finance (AERO) Price Up 30% Today Following Coinbase DEX Launch

Coinbase Global Inc. (NASDAQ: COIN) users can now directly trade Base-native tokens with their balance.…

August 9, 2025

Coinbase Launches In-App DEX Trading for U.S. Users, Starting With Base-Native Tokens

Coinbase is taking another big step as an all-in-one hub for crypto. The company has…

August 8, 2025

Ethereum Surges Above $4,000 After 8 Months, Is $6,000 Next?

Ethereum just crossed the $4,000 mark for the first time since last December, sparking excitement…

August 8, 2025

XRP Ledger Hits Record 7.3M Addresses, New Ethereum Layer 2 Launches With 25,000% Staking Rewards

There’s palpable excitement amongst crypto investors as Ripple (XRP) hits a new milestone of 7.3…

August 8, 2025