Catenaa, Thursday, April 10, 2025- South Carolina has officially dismissed its lawsuit against Coinbase, which accused the cryptocurrency exchange of offering unregistered securities through its staking service.
This marks a significant win for Coinbase, although the company still faces legal challenges in other states over similar allegations.
The case was part of a wider regulatory crackdown on cryptocurrency firms, with several states arguing that staking services, where users lock up their cryptocurrency to earn rewards, should be considered the sale of unregistered securities. South Carolina had initially filed the lawsuit, claiming that Coinbase’s staking activities violated securities laws.
Coinbase, which has consistently denied the allegations, maintains that its staking services are transparent and comply with existing regulations. The dismissal of the lawsuit in South Carolina provides temporary relief for the exchange, but ongoing litigation in other states means the legal battles are far from over. The outcome of these cases could significantly influence how cryptocurrency staking services are regulated in the U.S.
For now, the decision in South Carolina marks a positive development for Coinbase, which continues to push for clearer regulatory frameworks within the cryptocurrency industry.
