1. United States
2. Calif.
3. Letter

I am writing to express my deep concern over California's ongoing lawsuit against Coinbase regarding its staking services. This legal action, initiated in June 2023, is part of a broader challenge that initially involved the SEC and several states. While the SEC and five states have since dropped their cases, California remains one of just five states still pursuing this misguided legal action. Staking is a crucial aspect of many blockchain networks, allowing users to earn rewards by participating in network validation. Coinbase's staking services provide a user-friendly way for individuals to engage in this process, offering both accessibility and consumer protections. By continuing this lawsuit, California is not protecting consumers but rather pushing them towards less regulated platforms, potentially exposing them to greater risks. It's worth noting that Coinbase has an impeccable safety record and has consistently demonstrated its commitment to regulatory compliance. The company has implemented robust consumer protections, ensuring that users can participate in staking with confidence. By forcing Coinbase to limit or cease its staking services in California, we risk stifling innovation and denying our residents access to important financial opportunities in the digital asset space. The dismissal of similar lawsuits by the SEC and other states suggests that the legal basis for these claims is questionable at best. Instead of pursuing this counterproductive litigation, I urge you to work towards developing a comprehensive regulatory framework for digital assets. This approach would provide clarity for businesses and protect consumers while allowing for continued innovation in this rapidly evolving sector. Time is of the essence. As other states and federal regulators step back from this misguided approach, California risks falling behind and potentially harming its reputation as a hub for technological innovation. I strongly encourage you to reconsider this lawsuit and instead focus on creating an environment where responsible blockchain technologies can thrive, benefiting both our economy and our citizens.