Coinbase Wins as Vermont Backs Down—Is the Staking Crackdown Fading?

In a significant victory for Coinbase and the broader crypto industry, the state of Vermont has dropped its case against the exchange’s staking program. The move raises fresh questions about whether regulatory scrutiny on staking is easing or if this is merely a temporary reprieve.

Vermont Reverses Course on Staking Ban

Vermont was among the multiple U.S. states that challenged Coinbase’s staking services, arguing that they constituted unregistered securities offerings. However, in a surprising reversal, state regulators have now withdrawn their objections, allowing Coinbase’s staking operations to continue unhindered within Vermont.

Coinbase welcomed the decision, reiterating its stance that staking is not a security but a vital mechanism for blockchain network participation. “This outcome reinforces our commitment to providing secure and legally compliant staking services for our customers,” a company spokesperson stated.

What This Means for Staking in the U.S.

Vermont’s decision could have broader implications for the crypto industry, especially as staking services remain under federal and state-level scrutiny. Key takeaways from this development include:

A Potential Shift in Regulatory Tone – If more states follow Vermont’s lead, staking services could regain momentum across the U.S.

Strengthening Coinbase’s Legal Position – This win may bolster Coinbase’s defense in other ongoing staking-related lawsuits.

Positive Signal for Proof-of-Stake Networks – The decision benefits Ethereum, Solana, and other PoS-based chains, as staking remains an essential component of network security and decentralization.

Is the Staking Crackdown Ending?

While Vermont’s move is a positive step, the larger regulatory battle is far from over. The SEC’s lawsuits against Coinbase and other exchanges remain active, and federal regulators have yet to provide clear guidelines on staking.

Still, this victory suggests that some regulators may be reconsidering the severity of their stance, which could lead to a more favorable environment for crypto staking in the future.

For now, Coinbase and its supporters are celebrating—but the fight for staking’s legitimacy is far from finished.