Catenaa, Sunday, March 23, 2025 – The Vermont Department of Financial Regulation has dismissed its case against Coinbase, marking another legal victory for the crypto exchange amid shifting U.S. regulatory policies.
The state filed a show cause order against Coinbase in June 2023, alleging that its staking services constituted unregistered securities. Vermont’s lawsuit was part of a broader crackdown, with several states, including Kentucky, California, and New Jersey, taking similar action against the exchange.
However, Vermont’s regulators announced Thursday that they were rescinding the case without prejudice, citing the SEC’s decision last month to drop its own lawsuit against Coinbase. The SEC has also recently abandoned legal actions against other crypto firms, including Robinhood and Kraken.
“In light of the dismissal of the Federal Action and the likelihood of new federal regulatory guidance, the Division believes it would be most effective and in the best interest of justice to rescind the pending Show Cause Order,” Vermont regulators said.
Coinbase Chief Legal Officer Paul Grewal applauded the decision, calling it a step toward regulatory clarity. “Staking services are not securities,” he said, urging other states to follow Vermont’s lead.
While the case’s dismissal signals a more lenient approach, Coinbase continues pushing for comprehensive federal legislation to solidify regulatory clarity in the U.S. Congress remains under pressure to establish clearer guidelines for digital asset firms.
