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

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 While Congress is pushing forward with clearer crypto rules, some states are still using outdated or unclear laws to take enforcement action.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