Coinbase has officially expanded its services to Hawaii, allowing residents to buy, sell, and stake cryptocurrencies.

This marks a significant change, as Hawaii was the only state where Coinbase previously did not operate due to stringent regulations.

Historically, Hawaii's regulations required crypto exchanges to maintain cash reserves equal to the value of digital assets held by customers, making it difficult for companies like Coinbase to operate.

However, recent changes by the Hawaii Department of Commerce and Consumer Affairs have eliminated the need for a money transmitter license, facilitating Coinbase's return.

These adjustments were part of the Hawaii Digital Currency Innovation Lab pilot program, which aimed to relax previous restrictions.

As a result of these regulatory changes, residents can now trade cryptocurrencies and earn interest through staking, which supports blockchain transactions.

New users can quickly set up accounts and take advantage of features such as staking, with potential APY rates of up to 12% on popular assets.

Following the announcement, Coinbase shares rose by 2.3%, reflecting positive market conditions in both equities and cryptocurrency.

Faryar Shirzad, Coinbase's chief policy officer, praised Hawaii's updated regulations for aligning with the company's goals and increasing crypto accessibility.

Coinbase is also part of the Stand With Crypto movement, advocating for clearer regulations from lawmakers.

Despite this expansion, Coinbase is currently facing legal challenges from the SEC regarding the disclosure of regulatory documents.