Coinbase has ramped up its lobbying efforts in Maryland following a directive from Attorney General Anthony Brown that impedes its rewards program. Attorney General Brown claims that the program contravenes existing securities law, prompting Coinbase to act swiftly to challenge the order.
Operating globally in over 100 countries and managing assets valued at $425 billion, Coinbase is now actively engaging with a multitude of Maryland state lawmakers. The aim is to garner legislative support for a proposal that would overturn a 2023 “cease and desist” order issued by the attorney general’s securities division.
The contentious order specifically prohibits Coinbase from offering a staking procedure, which allows digital asset holders to earn returns. Through staking, customers temporarily lock up some of their assets, enabling Coinbase to verify transactions. In return, participants receive rewards akin to interest or dividends, making the staking process an attractive option for many investors.
If successful, the new legislation would pave the way for Coinbase to reinstate its staking rewards program, countering the current restrictions imposed by the state.
