California led a ten-state regulatory task force behind the 2023 staking enforcement actions against Coinbase, which affected over 600,000 accounts held by California residents

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Circle submitted comments to the SEC urging it to accommodate permissionless institutional networks, such as the Arc Network, while finalizing its proposed Regulation Crypto Assets

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Acting Bureau Chief Keith A. Alt signed an order rescinding the cease-and-desist order and $5 million penalty against Coinbase's staking service without prejudice

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SEC staff issued an updated FAQ on governance tokens establishing that projects must show widely distributed voting power among independent holders to avoid being designated as a controlling central party

Coinbase Chief Legal Officer Molly Abraham stated that New Jersey users missed millions of dollars in staking rewards over three years, while Coinbase previously estimated those missed state rewards at over $15 million

The November 2, 2026 SEC update on governance tokens represents nonbinding staff guidance rather than formal law or regulation, leaving open the possibility that future regulators interpret governance token control differently

The U.S. midterm elections on November 3, 2026 will determine the composition of the next Congress responsible for potentially revisiting cryptocurrency legislation

The SEC staff guidance issued on November 2, 2026, explained how governance cryptocurrencies align with the SEC's March 2026 cryptocurrency framework

In its October 29, 2026 quarterly filing, Coinbase warned that losing its remaining state-level enforcement cases in California, Maryland, Wisconsin, and Washington could materially hurt its business

The U.S. Securities and Exchange Commission agreed in February 2025 to drop its federal lawsuit against Coinbase regarding the exchange's crypto staking service

State securities regulators in Alabama, Illinois, Kentucky, South Carolina, and Vermont dropped their respective regulatory actions against Coinbase's staking service during 2025

The proposed CLARITY Act, which could provide statutory certainty for governance tokens beyond SEC staff guidance, failed to advance in Congress in September 2026

Coinbase Chief Executive Officer Brian Armstrong stated that New Jersey users will regain access to Coinbase's crypto staking service very soon following the state's October 30, 2026 order rescission

In May 2025, U.S. Securities and Exchange Commission staff issued non-binding guidance stating that protocol staking generally does not involve securities, though Commissioner Caroline Crenshaw publicly dissented from that position

In June 2023, 145,270 New Jersey residents were using Coinbase's staking service when the New Jersey Bureau of Securities alleged that the service constituted an unregistered security

SEC staff guidance indicates that a crypto project may maintain central control if a company or small group holds unilateral power to alter network rules, restrict access, or override decisions

California, Maryland, and Wisconsin continue to enforce agreements barring Coinbase from offering new staking services, while Washington state maintains an active regulatory enforcement action seeking a $4 million fine

Operating without central control can qualify a cryptocurrency as a digital commodity rather than a security, subjecting it to different regulatory requirements

In April 2025, Coinbase estimated that its users across multiple U.S. states had missed out on $90 million in staking rewards due to state-level regulatory restrictions

Miles Jennings said SEC staff FAQ Q 1.5 distinguishes between permissioned and permissionless crypto systems

Coinbase estimates that California users have missed out on more than $89 million in staking rewards since state regulatory restrictions took effect in 2023