Kentucky has become the third U.S. state to withdraw its lawsuit against Coinbase, which was accused of offering unregistered securities through its staking program.
The End of Kentucky's Case
On March 31, the Kentucky Department of Financial Institutions filed a joint stipulation of dismissal against Coinbase, citing the need for clearer federal rules.
Response from Coinbase and Other States
Coinbase's Chief Legal Officer Paul Grewal highlighted the importance of uniform federal standards. Vermont and South Carolina have also previously dropped their cases, following a trend toward the resolution of individual disputes.
The Future of Crypto Regulations
Despite a decline in the number of lawsuits, seven states continue their proceedings against Coinbase. However, the number of states enacting proactive crypto legislation, such as Kentucky's new law on self-custody and blockchain node protection, is increasing.
Kentucky's decision to drop its lawsuit against Coinbase highlights the need for clarity in federal crypto regulation. This move emphasizes the importance of a comprehensive national approach.
