Cryptocurrency exchange Uphold has officially relaunched staking services in the United States, marking a significant shift in regulatory sentiment toward digital assets. The move comes after Uphold suspended its staking offerings in 2023 due to regulatory uncertainty and aggressive enforcement by the U.S. Securities and Exchange Commission (SEC).
Uphold Resumes Staking Amid Policy Changes
Starting March 3, 2025, Uphold customers in the U.S. can once again earn staking rewards on 19 different cryptocurrencies, including Ethereum (ETH), Cosmos (ATOM), and Polkadot (DOT). Rewards will be distributed weekly in the same cryptocurrency that users have staked.
The decision to reinstate staking follows a period of regulatory softening in the U.S., with the SEC withdrawing multiple lawsuits against major crypto firms, including Coinbase. This shift signals a more favorable environment for blockchain-based financial services.
Regulatory Clarity Paves the Way
Uphold CEO Simon McLoughlin cited a changing regulatory landscape as the primary reason for the relaunch. “Back in 2023, SEC Chair Gary Gensler argued that most staking providers failed to provide necessary disclosures to customers. This led to significant fines, including Kraken’s $30 million penalty, forcing many exchanges to halt staking,” McLoughlin explained.
However, the U.S. regulatory environment has evolved under a new administration, with industry-friendly figures like Hester Peirce leading the SEC’s crypto task force and Paul Atkins emerging as a likely successor to Gensler as SEC Chair. McLoughlin emphasized that these leadership changes bring a more blockchain-friendly perspective to rulemaking.
A Positive Outlook for Crypto Staking
McLoughlin underscored the importance of staking in blockchain governance and economic activity, stating, “Users should absolutely be able to support this activity and earn rewards. With a more blockchain-forward approach in the U.S., we’re thrilled to offer staking services again.”
The SEC’s decision to drop lawsuits against major exchanges like Coinbase has also contributed to Uphold’s confidence in reinstating staking services. The crypto industry now sees this as a turning point toward regulatory clarity, potentially setting the stage for broader adoption and innovation in the staking sector.
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With Uphold leading the way, the revival of staking in the U.S. could mark a new era of growth and legitimacy for decentralized finance (DeFi).
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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