Alabama Regulator Targets Coinbase's Staking Program for Alleged Securities Violation

The Alabama Securities Commission has issued a "show cause" order to Coinbase and its parent corporation, alleging that the crypto exchange violated state securities laws with its staking rewards program "Earn." The regulator wants Coinbase to explain how it is not violating the law within 28 days. The ASC's action is part of a task force of ten state securities regulators in the U.S. committed to protecting investors in the decentralized finance space. The order doesn't forbid Coinbase from offering staking as a service as long as it complies with the law.