Coinbase News: Kentucky Joins South Carolina and Vermont in Dismissing Lawsuits Over Staking Services

In a significant development for the cryptocurrency exchange Coinbase, three U.S. states have dismissed their lawsuits against the company related to its staking services within a short span of time.

Kentucky Joins South Carolina, Vermont in Dismissing Coinbase Lawsuits

Just days after South Carolina backed off its staking lawsuit against crypto exchange Coinbase, Kentucky has become the third state in as many weeks to fold, following Vermont’s exit last month. The Kentucky Department of Financial Institutions filed a joint stipulation of dismissal on Monday, effectively ending its legal action over Coinbase’s staking services, which were previously accused of violating state securities laws. Coinbase Chief Legal Officer Paul Grewal posted on X, ’Congress needs to end this litigation-driven, state-by-state approach with a federal market structure law ASAP.’

Kentucky Drops Crypto Staking Lawsuit Against Coinbase

Kentucky has officially ended its lawsuit against Coinbase regarding staking services, making it the third U.S. state to withdraw legal action against the exchange in recent months. On March 31, the Kentucky Department of Financial Institutions filed a joint stipulation of dismissal, ending its case that accused Coinbase of offering unregistered securities through its staking program. Following the move, Coinbase’s Chief Legal Officer Paul Grewal advocated for federal clarity, urging Congress to end the litigation-driven, state-by-state approach with a federal market structure law. Kentucky’s exit follows similar dismissals by Vermont and South Carolina, both of which cited the dismissal of the U.S. Securities and Exchange Commission’s federal case and the need for clearer nationwide regulation.