South Carolina has withdrawn its lawsuit against cryptocurrency exchange Coinbase, which accused it of offering unregistered securities. This marks another victory for the company.
Case Background
South Carolina was one of ten states that took action against Coinbase in June 2023 over its staking rewards program. These states alleged that the program amounted to selling unregistered securities as users deposited crypto assets to validate transactions and received rewards.
Developments
The case was dismissed in a joint agreement with South Carolina after Vermont made a similar decision. According to Paul Grewal, South Carolina residents lost an estimated $2 million in staking rewards due to the restrictions.
Implications for the Future
The lifting of restrictions allows South Carolina residents and businesses to resume using Coinbase’s staking services, potentially influencing other states involved in similar cases. Coinbase is also expanding, considering acquiring Deribit and entering the Indian market again.
The dismissal of the lawsuit by South Carolina underscores a shift in perspective towards staking programs, opening new opportunities for consumers and businesses in the crypto investment arena.
