Kentucky's financial regulator has dismissed its case against Coinbase related to the staking rewards program, aligning with decisions by Vermont and South Carolina.
History of Legal Actions Against Coinbase
In June 2023, financial regulators from ten states, including Kentucky, filed lawsuits against Coinbase, alleging the company breached securities laws through its staking rewards program. On the same day, the SEC filed a similar lawsuit against Coinbase, which it dropped last month.
Dismissal of Lawsuits in Vermont and South Carolina
Vermont was the first to end its lawsuit against Coinbase, citing the SEC's February 2023 decision to drop its action and the likelihood of changes in federal regulatory guidance. South Carolina followed suit, dismissing its lawsuit in March 2023.
Kentucky's Decision and SEC Policy Changes
Kentucky's move to dismiss its lawsuit came after the governor signed a bill providing protections for cryptocurrency. These actions coincide with SEC's policy shifts, as it reconsiders its approach and has created a task force to engage with the cryptocurrency industry.
The dismissal of state-level lawsuits against Coinbase reflects changes in the approach to crypto regulation, which may impact policies and interactions with crypto companies.
