The state of Kentucky has ended its lawsuit against cryptocurrency exchange Coinbase, ending a two-year legal battle over its staking services.
History of the Legal Case
Kentucky, alongside other states, filed a lawsuit against Coinbase, claiming its staking services amounted to unregistered securities. However, on March 31, both parties agreed to dismiss the lawsuit without prejudice.
Changing Regulatory Attitudes
Regulators at both the state and federal levels are becoming more receptive to the cryptocurrency industry. The precedent was set by Vermont, which dropped its lawsuit on March 14 after the SEC dismissed its own case against the exchange. Nonetheless, seven states still have similar actions pending.
New Laws in Kentucky
New local laws played a key role in the lawsuit's dismissal. Recently, Governor Andy Beshear signed the Bitcoin Rights Bill into law, providing legal clarity to the crypto industry. The legislation covers self-custody rights and clarifies the classification of staking and node operations.
The closure of the Kentucky case highlights a growing flexibility among states in approaching cryptocurrency regulation. These enacted laws contribute to legal clarity for emerging technologies.
