South Carolina dismissed its lawsuit towards crypto trade Coinbase, turning into the second state to drop its staking-related case after the US watchdog’s shift towards the trade. The trade’s Chief Authorized Officer (CLO) known as the event a “victory” for crypto buyers.
South Carolina Drops Coinbase Staking Companies Lawsuit
On Thursday, Coinbase’s CLO, Paul Grewal, revealed that South Carolina had dismissed its case towards the crypto trade in a joint stipulation between the state’s Legal professional Common Securities Division and the platform.
Grewal affirmed that “the dominoes maintain falling” as South Carolina grew to become the second state to dismiss its staking lawsuit towards Coinbase.
Joint stipulation between South Carolina Legal professional Common’s Securities Division and Coinbase. Supply: South Carolina Legal professional Common
For context, in June 2023, 10 US state regulators, together with Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin, accused the crypto trade of violating securities legislation.
The multi-state job power issued a Present Trigger Order towards Coinbase, arguing that it violated securities legislation “by providing its staking rewards program accounts to Alabama residents with no registration to supply or promote these securities.”
On the identical day, the Securities and Trade Fee (SEC) sued Coinbase for providing unregistered securities and failing to register the supply and sale of its crypto asset staking-as-a-service program.
Earlier this month, Vermont dropped its lawsuit concerning staking providers, citing the SEC’s dismissal of its case towards Coinbase and the continuing regulatory adjustments within the Fee.
“In gentle of the dismissal of the Federal Motion and the chance of latest federal regulatory steering, the Division believes it could be most effective and in the perfect pursuits of justice to rescind the pending Present Trigger Order, with out prejudice,” the March 13 courtroom doc reads.
IS The US Crypto Panorama Turning into Much less Hostile?
Coinbase’s CLO famous that South Carolinians misplaced over $2 million from staking rewards resulting from this case and considers yesterday’s dismissal a victory for the 52 million American crypto buyers, who “deserve commonsense shopper protections and clear guidelines.”
Grewal additionally applauded South Carolina’s determination, hoping it’s “an indication of issues to return within the few states left that prohibit staking.”
Notably, the US crypto panorama has turn into friendlier beneath the brand new administration. The SEC, led by appearing chair Mark Uyeda, is engaged on creating a transparent regulatory framework, in search of public enter to handle the long-standing regulatory challenges it has confronted.
Amid the continuing adjustments, the Fee has dismissed or paused a number of key crypto lawsuits over the previous two months, together with Coinbase, Robinhood, and Binance. The regulatory company continued its crypto litigation retreat on Thursday, formally dropping three circumstances and shutting one investigation.
As journalist and Podcast Host Eleanor Terrett reported, the SEC closed its investigation into Crypto.com with no enforcement motion and “formally introduced litigation dismissal towards Kraken, Consensys, and Cumberland.
Terret famous that the Ripple lawsuit wasn’t included as a result of “it’s barely totally different to those different circumstances in that (…) the SEC now has to go to the Southern District and ask Decide Torres to carry the usual injunction. As soon as that’s carried out, they’ll vote on every part without delay, together with the withdrawing of the attraction.”
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