South Carolina has formally dropped its lawsuit in opposition to cryptocurrency change Coinbase concerning its staking companies, marking one other win for the corporate in its authorized battles throughout america.
In keeping with a joint stipulation filed on March 27, the South Carolina Legal professional Normal’s securities division and Coinbase agreed to dismiss the case, which had accused the agency of providing unregistered securities by way of its staking program.
The lawsuit was initially filed on June 6, 2023 — the identical day Coinbase was hit with a separate federal lawsuit by the U.S. Securities and Trade Fee (SEC), which itself was dismissed in February 2025.
Coinbase CLO Paul Grewal Hails South Carolina’s Dismissal of Lawsuit
Coinbase’s Chief Authorized Officer, Paul Grewal, celebrated the choice in a publish on X, stating, “South Carolina simply joined Vermont to dismiss its unfounded staking lawsuit in opposition to Coinbase.”
Grewal referred to as it a victory not just for the corporate but in addition for American crypto customers and expressed hope that different states would observe.
And …. we're now stay once more w/ staking in South Carolina – together with all entrypoints.
— paulgrewal.eth (@iampaulgrewal) March 28, 2025
South Carolina was one among 10 U.S. states that filed enforcement actions in opposition to Coinbase final June.
The remaining eight states — Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington, and Wisconsin — have but to dismiss their circumstances.
Grewal claimed that the lawsuit led to an estimated $2 million in misplaced staking rewards for South Carolina residents.
“The 52 million Individuals who personal crypto deserve commonsense shopper protections and clear guidelines,” Grewal stated, applauding South Carolina for “standing up for justice.”
South Carolina Introduces Strategic Digital Belongings Reserve Act
In a parallel growth, the US state can be making headlines for introducing crypto-forward laws.
On the identical day the lawsuit was dismissed, state lawmakers launched the “Strategic Digital Belongings Reserve Act of South Carolina,” which proposes that the state allocate as much as 10% of sure funds into cryptocurrencies like Bitcoin.
Filed by Rep. Jordan Tempo, the invoice outlines the creation of a Strategic Digital Belongings Reserve and explicitly references Bitcoin a number of occasions.
Proud to file laws that empowers SC to observe @realDonaldTrump’s result in create a state degree strategic crypto reserve. This provides the Treasurer new instruments to guard taxpayer {dollars} from inflation https://t.co/JqUuBw243D
— Jordan Tempo (@Jscottpace) March 27, 2025
It authorizes State Treasurer Curtis Loftis to carry as much as a million BTC within the reserve and spend money on Bitcoin throughout varied state-managed funds, together with the Normal Fund and the Price range Stabilization Reserve.
Whereas the invoice focuses totally on Bitcoin, it leaves room for different digital property.
The publish South Carolina Drops Lawsuit In opposition to Coinbase Over Staking Companies appeared first on Cryptonews.