Catenaa, Monday, April 07, 2025-Kentucky has dismissed its lawsuit against Coinbase’s staking services, joining Vermont and South Carolina in withdrawing state-level legal action against the crypto exchange.
The Kentucky Department of Financial Institutions filed the dismissal Monday, following a broader trend of enforcement pullbacks. Coinbase had faced allegations that its staking services constituted unregistered securities offerings.
Coinbase Chief Legal Officer Paul Grewal welcomed the move, calling it a win for consumers and innovation. Seven states, including California and Illinois, still have active cases against Coinbase.
Kentucky’s decision follows the state’s passage of House Bill 701, which affirms crypto self-custody rights and exempts staking from securities laws.
