Coinbase CEO Slams State-Level Staking Restrictions Post-SEC Green Light

Coinbase CEO Brian Armstrong has voiced strong criticism against multiple U.S. states for continuing to impose restrictions on cryptocurrency staking rewards, even after the SEC provided regulatory clarity in late May 2025. The SEC’s Division of Corporation Finance issued guidance stating that proof-of-stake activities generally do not qualify as securities offerings, effectively legitimizing staking services at the federal level. Armstrong’s remarks highlight the ongoing tension between state and federal regulations in the crypto space, underscoring the challenges faced by industry leaders in navigating this complex landscape. This development marks a significant moment for crypto staking services, as they gain federal recognition while still facing hurdles at the state level.

Coinbase CEO Criticizes State-Level Staking Restrictions Despite SEC Approval

Coinbase CEO Brian Armstrong has publicly condemned several U.S. states for maintaining restrictions on cryptocurrency staking rewards, despite recent regulatory clarity from the SEC. In late May 2025, the SEC’s Division of Corporation Finance issued guidance indicating that proof-of-stake activities generally do not constitute securities offerings, providing federal-level legitimacy to staking services.

Armstrong took to Twitter to accuse states like California, New Jersey, Maryland, Washington, and Wisconsin of clinging to what he called a "bogus theory" about crypto staking. He argued these restrictions financially harm consumers by denying them access to one of crypto’s primary yield-generating mechanisms. Coinbase has since published a U.S. map highlighting the regulatory disparity between federal and state approaches.

The ongoing conflict creates a complex compliance landscape for exchanges operating nationwide. While the SEC’s MOVE was seen as a victory for the industry, the lack of uniform state-level adoption continues to hinder broader institutional participation in staking services.

21Shares Announces 3-for-1 Share Split for ARK 21Shares Bitcoin ETF (ARKB)

21Shares US LLC revealed a 3-for-1 share split for its ARK 21Shares Bitcoin ETF (ARKB), effective June 16. The move aims to enhance retail accessibility by tripling share count while maintaining the fund’s net asset value and underlying Bitcoin holdings. ARKB, trading at $104.33, holds 45,410 BTC ($4.82B) and saw a 27% quarterly gain despite a $73.9M single-day outflow on June 2.

The physically backed ETF tracks Bitcoin’s CME CF Reference Rate, offering regulated exposure to the asset. Custody is managed by Coinbase, with BitGo and Anchorage Digital mitigating counterparty risk. This strategic split coincides with growing institutional interest in crypto investment vehicles.