California's Crypto Rewards Plummet by $110M Due to Inflation and 'Ban'

Coinbase's Campaign for Staking: Coinbase has launched the "Bring Back Staking in CA" campaign, urging California to lift its ban on retail crypto staking, which has reportedly cost users $110 million in lost rewards since June 2023.

Regulatory Background: The California Department of Financial Protection and Innovation (DFPI) imposed the ban, claiming Coinbase's staking rewards program violated state securities laws, although the DFPI clarified that staking itself is not banned, just Coinbase's custodial staking program until it meets state requirements.

Impact on Users: The ban affects over 644,470 California residents who were actively participating in Coinbase's staking offerings, representing more than $1.28 billion in combined holdings.

California's Inflation Situation: Despite national inflation rates cooling, California continues to experience higher price growth due to elevated housing and service costs, tight housing supply, and high baseline expenses, making it one of the most inflation-affected states in 2025.