The post South Carolina Drops Coinbase Lawsuit as Bitcoin Reserve is on the Horizon appeared on BitcoinEthereumNews.com.

South Carolina announced that it is dropping charges levelled against the crypto exchange Coinbase while it pursues a bill on Bitcoin Reserve.  The South Carolina state confirmed dismissing the lawsuit against the US largest crypto exchange, Coinbase, alleging illegality in staking services. The Attorney General confirmed the securities division officially withdrew the case following a joint application with Coinbase on March 27. South Carolina joined Vermont, which also withdrew legal action against Coinbase. South Carolina Drops Coinbase Case Nine other states levelled The charges in a coordinated action in June 2023. The states alleged Coinbase provided unregistered securities disguised via the crypto staking services. Staking allowed the holders to earn rewards whenever they locked their existing tokens to validate blockchain transactions.  Coinbase chief legal executive Paul Grewal hailed the dismissal via an X post, indicating a new dawn as South Carolina joined Vermont to end the unfounded staking lawsuit. He added that the move was not only a victory for Coinbase but also for American consumers.  Grewal decried the restrictions as they denied the South Carolina consumers the $2 million they would have earned as staking rewards. The executive added that staking services were accessible in South Carolina for both app and website users.  The actions coincided with the lawsuit filed by the US Securities and Exchange Commission alleging violations of the securities laws. The securities watchdog would dismiss its case on February 27, suggesting a shift in the regulatory approach to admitting crypto staking. Despite dropping the case, Coinbase faces lawsuits in eight other states, with each alleging that the trading platform failed to register the product under the securities laws.  The lawsuits indicated the Brian Armstrong-led crypto exchange was selling unregistered securities via the staking service. The prosecutors suggested that users would receive rewards after depositing the crypto…

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Filed under: News - @ March 30, 2025 8:11 pm