Uphold Relaunches Crypto Staking in the US Amid Shifting Regulatory Landscape

Cryptocurrency exchange Uphold has announced the relaunch of its staking services in the United States, citing a more favorable regulatory environment for digital assets. This move follows the company's decision to suspend its staking offering in 2023 due to regulatory uncertainties surrounding crypto assets in the country. With shifting policies and greater clarity on crypto regulations, Uphold is once again allowing US customers to earn rewards on their staked assets.

Staking Services Resumed in the US

Starting March 3, 2025, Uphold users in the US can once again participate in crypto staking, with the ability to earn rewards on holdings of 19 different cryptocurrencies. This includes popular digital assets such as Ether (ETH), Cosmos (ATOM), and Polkadot (DOT). Staking rewards are paid out weekly in the same cryptocurrency that has been staked, offering users the opportunity to benefit from the growing blockchain economy.

The decision to resume staking services comes after Uphold reintroduced the feature in the United Kingdom in early February. According to the company, the US regulatory environment has now softened, allowing them to reintroduce staking to US customers without the legal concerns that led to the service’s suspension in 2023.

Why Uphold Halted Staking in the US

Uphold CEO Simon McLoughlin explained that the company suspended staking services in the US due to a lack of regulatory clarity and what he described as a "regulation by enforcement" approach adopted by the Securities and Exchange Commission (SEC) under Chairman Gary Gensler. McLoughlin pointed to the SEC’s 2023 crackdown on staking providers, including the significant fine levied on Kraken for its staking offering, as a major factor in Uphold’s decision to pull back.

At the time, McLoughlin noted that the SEC’s guidance on staking was unclear, particularly regarding the need for providers to disclose how customer assets were protected. In light of these regulatory uncertainties, Uphold chose to preemptively halt its staking services in the US, in order to avoid potential legal issues.

Regulatory Shifts and a More Favorable Crypto Policy

The recent decision to bring back staking services in the US reflects a shift in the regulatory landscape. McLoughlin praised the evolving approach of US regulators, noting that the current administration and individuals such as SEC Commissioner Hester Peirce and the incoming presumptive SEC Chair Paul Atkins are more crypto-aware and supportive of blockchain technology.

“The legal ecosystem surrounding crypto assets in the US has clearly changed,” McLoughlin said. “It’s great to see people who understand the technology and its potential — such as Hester Peirce leading the SEC’s crypto task force — now in positions where they can influence the sentiment and direction of crypto rulemaking.”

He emphasized that staking plays a vital role in blockchain governance and the broader crypto economy, and that users should be able to participate in this process and earn rewards for their involvement. With a more blockchain-forward environment emerging in the US, McLoughlin expressed his company’s excitement to reintroduce staking services to US customers.

Impact of SEC Actions on Uphold’s Decision

A significant factor in Uphold’s decision to relaunch staking in the US was the SEC’s recent move to drop lawsuits against major exchanges, including Coinbase. This signals a shift toward a more supportive regulatory environment for crypto services in the country, which McLoughlin believes is a positive step for the industry.

“Uphold’s decision to relaunch staking is partly a result of the SEC dropping lawsuits against Coinbase,” McLoughlin said. “With these changes in the regulatory landscape, we feel confident that it’s the right time to offer staking services to our US customers once again.”

Looking Ahead: The Future of Staking in the US

As Uphold resumes its staking offering in the US, the company joins a growing list of exchanges and crypto platforms adapting to the changing regulatory environment. While regulatory clarity remains a work in progress, the recent changes indicate a more supportive stance toward digital assets, providing users with more opportunities to engage with blockchain networks and earn rewards.

For Uphold, the relaunch of staking in the US not only represents a return to offering a key service to its customers but also highlights the broader trend of increased acceptance of blockchain technology within the US regulatory framework. As the regulatory landscape continues to evolve, it is likely that other platforms will follow suit in reintroducing or expanding their staking services.

As the crypto market grows and matures, platforms like Uphold that navigate regulatory challenges effectively could play a significant role in shaping the future of decentralized finance and blockchain-based governance.