1. SEC Clarifies Staking Is Not a Security
The U.S. Securities and Exchange Commission (SEC) recently clarified that certain crypto staking services do not qualify as securities. This long-awaited stance was made official by the SEC’s Division of Corporation Finance, which stated that some digital asset staking programs do not meet the legal definition of a security under federal law.
2. Five States Refuse to Withdraw Lawsuit Against Coinbase
Despite the SEC dropping its federal-level lawsuit earlier this year, five U.S. states — California, New Jersey, Maryland, Washington, and Wisconsin — have refused to follow suit. These states continue legal action against Coinbase, one of the largest crypto exchanges, citing consumer protection concerns.
3. Coinbase CEO Responds to State Lawsuits
On May 30, Coinbase CEO Brian Armstrong responded on social media platform X (formerly Twitter), criticizing the five states for clinging to what he called “unsupported theories.” He argued that these lawsuits are preventing users in those states from receiving staking rewards, which could total up to $90 million in missed benefits.
4. Other States Have Dropped Their Cases
Following the SEC’s updated guidance, several states, including Illinois, Kentucky, South Carolina, Vermont, and Alabama, have officially ended their investigations into Coinbase's staking service. These states acknowledged that the legal foundation for the lawsuits no longer holds.
5. Coinbase Defends Its Staking Program
Coinbase maintains that its staking service is operated through a verified and secure process, enabling users to participate in blockchain networks without requiring technical expertise. The company emphasized that ongoing legal pressure from certain states is harming consumers rather than protecting them.
6. Trump Media Invests in Bitcoin as a Strategic Asset
In related news, Trump Media & Technology Group, where former President Donald Trump is a major stakeholder, announced on May 30 that it had raised $2.32 billion to build a Bitcoin-based strategic asset portfolio. With participation from 50 institutional investors, Trump Media is now positioned to become one of the largest Bitcoin-holding public companies in the U.S.
Asset custody will be managed by Crypto.com and Anchorage Digital.
7. Industry Calls for Regulatory Alignment
The crypto industry is increasingly calling for regulatory consistency between federal and state levels. Analysts warn that ongoing uncertainty regarding staking services could hinder broader institutional adoption of digital assets. Achieving regulatory harmony is now seen as critical for long-term growth and innovation in the U.S. crypto space.