{"id":19663,"date":"2025-03-29T04:31:35","date_gmt":"2025-03-29T04:31:35","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19663"},"modified":"2025-03-29T04:31:35","modified_gmt":"2025-03-29T04:31:35","slug":"south-carolina-drops-staking-lawsuit-against-coinbase-clo-expects-remaining-states-to-follow","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19663","title":{"rendered":"South Carolina Drops Staking Lawsuit Against Coinbase, CLO Expects Remaining States To Follow"},"content":{"rendered":"
\n

South Carolina dismissed its lawsuit against crypto exchange Coinbase, becoming the second state to drop its staking-related case after the US watchdog\u2019s shift toward the industry. The exchange\u2019s Chief Legal Officer (CLO) called the development a \u201cvictory\u201d for crypto investors.<\/p>\n

South Carolina Drops Coinbase Staking Services Lawsuit<\/h2>\n

On Thursday, Coinbase\u2019s CLO, Paul Grewal, revealed<\/a> that South Carolina had dismissed its case against the crypto exchange in a joint stipulation between the state\u2019s Attorney General Securities Division and the platform.<\/p>\n

Grewal affirmed that \u201cthe dominoes keep falling\u201d as South Carolina became the second state to dismiss its staking lawsuit against Coinbase.<\/p>\n

\"coinbase\"<\/p>\n

For context, in June 2023, 10 US state regulators, including Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin, accused the crypto exchange of violating securities law.<\/p>\n

The multi-state task force issued a Show Cause Order against Coinbase, arguing that it violated securities law \u201cby offering its staking rewards program accounts to Alabama residents without a registration to offer or sell these securities.\u201d<\/p>\n

On the same day, the Securities and Exchange Commission (SEC) sued<\/a> Coinbase for offering unregistered securities and failing to register the offer and sale of its crypto asset staking-as-a-service program.<\/p>\n

Earlier this month, Vermont dropped its lawsuit regarding staking services, citing the SEC\u2019s dismissal<\/a> of its case against Coinbase and the ongoing regulatory changes in the Commission.<\/p>\n

\u201cIn light of the dismissal of the Federal Action and the likelihood of new federal regulatory guidance, the Division believes it would be most efficient and in the best interests of justice to rescind the pending Show Cause Order, without prejudice,\u201d the March 13 court document reads<\/a>.<\/p>\n

IS The US Crypto Landscape Becoming Less Hostile?<\/h2>\n

Coinbase\u2019s CLO noted that South Carolinians lost over $2 million from staking rewards due to this case and considers yesterday\u2019s dismissal a victory for the 52 million American crypto investors, who \u201cdeserve commonsense consumer protections and clear rules.\u201d<\/p>\n

Grewal also applauded South Carolina\u2019s decision, hoping it is \u201ca sign of things to come in the few states left that restrict staking.\u201d<\/p>\n

Notably, the US crypto landscape has become friendlier under the new administration. The SEC, led by acting chair Mark Uyeda, is working on creating a clear regulatory framework, seeking public input<\/a> to address the long-standing regulatory challenges it has faced.<\/p>\n

Amid the ongoing changes, the Commission has dismissed or paused several key crypto lawsuits over the past two months, including Coinbase, Robinhood<\/a>, and Binance. The regulatory agency continued its crypto litigation retreat on Thursday, officially dropping three cases and closing one investigation.<\/p>\n

As journalist and Podcast Host Eleanor Terrett reported<\/a>, the SEC closed its investigation into Crypto.com with no enforcement action and \u201cformally announced litigation dismissal against Kraken, Consensys, and Cumberland.<\/p>\n

Terret noted<\/a> that the Ripple lawsuit wasn\u2019t included because \u201cit is slightly different to these other cases in that (\u2026) the SEC now has to go to the Southern District and ask Judge Torres to lift the standard injunction. Once that is done, they can vote on everything at once, including the withdrawing of the appeal.\u201d<\/p>\n

\"Coinbase,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

South Carolina dismissed its lawsuit against crypto exchange Coinbase, becoming the second state to drop its staking-related case after the US watchdog\u2019s shift toward the industry. The exchange\u2019s Chief Legal Officer (CLO) called the development a \u201cvictory\u201d for crypto investors. South Carolina Drops Coinbase Staking Services Lawsuit On Thursday, Coinbase\u2019s CLO, Paul Grewal, revealed that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-19663","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/19663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19663"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/19663\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}