TLDR
- Coinbase CLO criticizes state agencies ignoring the CLARITY Act, which classifies staking-as-a-service as a non-security.
- Despite federal guidance, five states continue pursuing claims against staking services, causing regulatory confusion.
- The CLARITY Act, with bipartisan support, clarifies staking-as-a-service is not a security, but states are not following.
- Coinbase pushes for clearer crypto regulations, hiring political advisor David Plouffe to advocate for federal stability.
Coinbase’s Chief Legal Officer (CLO), Paul Grewal, has raised concerns over state agencies’ refusal to acknowledge the CLARITY Act, which explicitly states that staking-as-a-service should not be classified as a security.
Grewal’s criticism comes as several states, including California, New Jersey, and Washington, continue to pursue legal actions against Coinbase, despite the federal legislation’s clear guidance. This regulatory disconnect has sparked significant frustration within the crypto community.
Coinbase Pushes for a Unified Regulatory Framework
Coinbase is advocating for a unified regulatory framework in the crypto industry, urging clearer and more consistent regulations. In a recent X post, Coinbase CLO Paul Grewal highlighted the disconnect between the CLARITY Act’s guidance on staking-as-a-service and state agencies’ enforcement actions.
Despite the Act’s clear identification of staking-as-a-service as a non-security, state agencies are refusing to acknowledge this provision. Grewal emphasized, “I gotta call out one critical provision of the 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.”
The CLARITY and GENIUS Acts both passed with strong bipartisan support, yet five states, including California, New Jersey, and Washington, continue pursuing claims against Coinbase, contradicting the Act’s clear direction. Grewal pointed out this inconsistency, especially since 32 Congressional Democrats from those states voted for the bill.
I hope people realize how important this moment is for crypto.
GENIUS is the first federal crypto bill signed into law, with more on the way.
The financial revolution starts here. https://t.co/PnzrInM6gc
— Brian Armstrong (@brian_armstrong) July 18, 2025
Coinbase is ramping up lobbying efforts, including hiring political advisor David Plouffe, to push for clear, consistent federal crypto laws. With ongoing state-level confusion, Coinbase urges swift Senate action to provide much-needed regulatory stability.
State Agencies Continue Enforcement Actions Despite Federal Clarity
Despite the passage of the CLARITY Act, which received broad bipartisan support, several states are still pressing claims against crypto firms offering staking services. The act explicitly identifies staking-as-a-service as a non-security, yet state regulators in at least five U.S. states—California, New Jersey, Washington, Maryland, and Wisconsin—have not aligned their enforcement actions with this federal ruling.
In a recent social media post, Grewal called out these states for failing to recognize the provision in the CLARITY Act that excludes staking services from securities laws. He noted that these states are continuing to pursue actions against Coinbase and other crypto firms, causing confusion in the regulatory landscape.
Grewal expressed concern over this inconsistency, emphasizing that it conflicts with the intentions of Congress and the 32 Democratic lawmakers from these states who supported the bill.
CLARITY Act Provides Clear Guidance on Staking, But States Are Not Following
The CLARITY Act was designed to provide clear rules for the crypto industry, particularly regarding staking-as-a-service. The act makes it clear that these services do not fall under securities laws, offering DeFi protocols a more predictable legal framework.
However, Grewal pointed out that the act’s provision is not widely known or recognized at the state level, leading to regulatory confusion.
Grewal urged for alignment between state regulators and the federal stance, warning that the continued pursuit of claims against staking services undermines the intent of Congress.
The lack of consistency in regulatory approaches, according to Grewal, makes it difficult for companies and investors to navigate the legal landscape. He called for a unified regulatory approach to ensure that clear, fair rules are established for the crypto industry.
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