Cryptocurrency exchange Uphold has reinstated its crypto staking services for U.S. customers, citing a more favorable regulatory environment.
This move comes after the company had suspended staking services in 2023 due to regulatory uncertainties.
Starting today, U.S. users can earn staking rewards on 19 cryptocurrencies, including Ethereum (ETH), Cosmos (ATOM), and Polkadot (DOT), with rewards disbursed weekly in the staked asset.
How Do Uphold’s Staking Rates Compare?
Upload’s top rate is for the COSMOS cryptocurrency, with an “estimated” reward rate of 14.4%. It’s not clear why the reward rate is ‘estimated’, but Uphold does note on its website that reward rates are dependent “on the blockchain and factors like network demand and activity.”
It is important to realise that crypto staking and crypto lending are quite different processes with different rewards structures and risk factors. Overall, Upholds rates appear to be on the average to upper level. Full comparisons with competitive staking platforms can be found here. Bonding periods are also applicable for some assets. For example, users wanting to withdraw Polkadot (DOT) from the staking program will have to contend with a 28 day unbonding period.
Why is Uphold Back In The US?
Uphold’s CEO, Simon McLoughlin, highlighted the improved regulatory landscape under the current U.S. administration, noting that individuals with a deep understanding of blockchain technology are now influencing crypto policy. He stated, “With the new blockchain-forward environment in the U.S., we’re delighted to offer staking services to our U.S. customers once again.”
Interestingly, if you live in a country where Uphold offers its Staking Program—excluding Australia, Mexico, New Zealand, South Africa, South Korea, or Switzerland—and you choose not to participate in the program, Uphold may still use your eligible cryptocurrencies for staking.
However, in this scenario, Uphold keeps any rewards earned from staking, and you won’t receive any staking rewards. On the plus side, your assets remain readily accessible, as they aren’t subject to any waiting periods typically associated with staking.
The reinstatement of Uphold’s staking services reflects a broader trend of cryptocurrency platforms adapting to evolving regulations to meet user demand for staking opportunities.
