South Carolina has ceased its legal action against the cryptocurrency exchange Coinbase, following Vermont's recent similar move.
South Carolina's Lawsuit Withdrawal
Paul Grewal, Coinbase's chief legal officer, mentioned that locals missed out on approximately $2 million in potential staking rewards due to the lawsuit. "The 52 million Americans who own crypto deserve commonsense consumer protections and clear rules," Grewal said on social media, adding that staking is now live again in the state.
Regulatory Shifts
As reported, the U.S. SEC also dropped its case against Coinbase last month. The lawsuit was originally filed in 2023, prompting states like California, Maryland, and Alabama to take similar actions. It remains uncertain whether the SEC's changed stance will lead the remaining states to drop their lawsuits.
Impact on the Crypto Market
The new SEC administration has shown significant interest in staking and is expected to issue guidance on the matter in the future. Earlier today, the SEC also dismissed cases against Kraken, Consensys, and Cumberland as part of efforts to unwind former Chair Gary Gensler's legacy.
The withdrawal of the lawsuit by South Carolina marks a significant moment in cryptocurrency regulation in the U.S. This decision could set a precedent for other states.
