Uphold Relaunches Crypto Staking Services in the US Amid Evolving Regulatory Landscape

Uphold, the popular cryptocurrency exchange, has announced the relaunch of its staking services in the United States, effective March 3, 2025. The decision follows a shift in the US regulatory landscape and a more favorable stance on digital assets. This marks a significant development for US-based cryptocurrency users, as they can once again earn staking rewards on a wide range of crypto assets.

After resuming staking services in the United Kingdom earlier this year in February, Uphold has now extended this feature to its US customers. Starting from March 3, users can stake 19 different cryptocurrencies, including well-known assets such as Ether (ETH), Cosmos (ATOM), and Polkadot (DOT). Staking rewards will be paid out weekly in the same cryptocurrency that users stake, providing additional utility for their holdings.

A Shift in US Crypto Regulations

The relaunch of staking services is attributed to changes in the regulatory environment in the US, where the Securities and Exchange Commission (SEC) has softened its stance on certain crypto-related activities. Notably, the SEC has dropped several high-profile cases, including those against major exchanges like Coinbase, which had previously faced scrutiny over their staking offerings.

Simon McLoughlin, CEO of Uphold, highlighted that the company had paused its staking services in the US in 2023 due to the lack of regulatory clarity and the SEC’s “regulation by enforcement” approach. At the time, SEC Chairman Gary Gensler had criticized staking providers for not offering adequate disclosures about how users’ staked assets were being protected.

The SEC’s crackdown on staking services culminated in substantial fines for exchanges offering staking, with Kraken facing a $30 million penalty over its staking offering. This regulatory pressure forced many exchanges to suspend their staking services, including Uphold, which made the decision to end its staking offerings preemptively in response to SEC guidance.

“We can’t ignore the recent SEC guidance on staking,” McLoughlin explained, emphasizing the regulatory challenges that exchanges faced. The suspension was a precautionary measure to ensure that Uphold complied with the evolving legal requirements.

A Changing Regulatory Landscape

However, the regulatory climate in the US has since shifted, with new leadership and a more crypto-friendly approach to policy. McLoughlin expressed optimism about the changing landscape, noting that “common sense is prevailing in the US approach to crypto policy.”

He also commended key figures in the US regulatory system, such as Hester Peirce, who is leading the SEC’s crypto task force, and Paul Atkins, the presumptive incoming SEC Chair. According to McLoughlin, these individuals, who have a deeper understanding of blockchain technology, are in positions to influence the future direction of crypto regulations in the US.

“It’s great to see people who actually understand the technology now in positions where they can influence the sentiment and direction of crypto rulemaking,” McLoughlin said. He stressed that staking is a vital part of blockchain governance and the broader cryptocurrency economy.

The Importance of Staking for Blockchain Ecosystems

The Uphold CEO emphasized the importance of staking, not only for investors but also for the health of blockchain networks. Staking helps to secure and validate transactions within proof-of-stake (PoS) blockchains, contributing to the overall governance and sustainability of the network.

“Users should absolutely be able to support this activity and earn from that support,” McLoughlin added, underscoring the growing recognition of staking’s role in blockchain ecosystems.

With the regulatory landscape becoming more supportive, Uphold is excited to offer staking services once again to its US customers. McLoughlin noted that the shift in US policy, especially with the SEC dropping lawsuits against major exchanges like Coinbase, has played a crucial role in facilitating this relaunch.

This move is also part of a broader trend in which crypto exchanges are regaining confidence in offering staking services, thanks to improved clarity around regulations and increased acceptance of blockchain technology by regulators.

As the crypto space continues to mature, Uphold’s relaunch of staking services is a positive sign for users in the US looking to engage more deeply with the crypto ecosystem and earn rewards on their digital assets.