South Carolina has recently joined Vermont in dismissing lawsuits against the crypto exchange Coinbase regarding its staking services, according to a joint stipulation filed on March 27.
Reasons for Lawsuit Dismissal
South Carolina and Vermont have dropped their legal challenges against Coinbase, which accused the exchange of offering unregistered securities. Paul Grewal, Coinbase's chief legal officer, noted that due to these lawsuits, South Carolina residents lost an estimated $2 million in staking rewards.
Active Lawsuits Against Coinbase
Despite the dismissal by South Carolina and Vermont, lawsuits against Coinbase remain active in eight states, including Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington, and Wisconsin.
New South Carolina Legislation
On the same day South Carolina dropped its lawsuit, State Representative Jordan Pace introduced a bill allowing the state treasurer to allocate up to 10% of certain state funds to cryptocurrencies, specifically Bitcoin. This proposal is unique as it specifically mentions Bitcoin, allowing for a reserve of up to 1 million Bitcoin.
The dismissal of the lawsuit in South Carolina and the introduction of new digital asset legislation signal changing state relationships with cryptocurrencies and potential future economic experiments in this sector.
