The crypto exchange Coinbase scored another victory in the legal wars it has been fighting. Vermont, a state of the United States, dropped its lawsuit against Coinbase over its staking service.
Coinbase’s Chief Legal Officer, Paul Grewal, celebrated Vermont’s decision, calling it a sign of "progress."
The stake services, he said, are not securities. “We’ve always been clear about this,” he explained. Writer X. “We applaud Vermont because it embraces progress and provides clarity to its citizens that own digital assets.”
Grewal then urged the other states that are pursuing similar policies to “take notes from Vermont.”
The decision follows the U.S. Securities and Exchange Commission's (SEC) decision to You can dismiss your own case Just a few weeks ago, the US government filed a lawsuit against Coinbase. This reflected sweeping changes in regulation for the cryptocurrency industry during the administration of President Donald Trump.
SEC – The new SEC Task Force Vermont’s decision was to drop its suit against Coinbase because it “provided guidance regarding the promulgation rules regarding regulation of crypto-products and services”.
The Division of Justice believes that it is in the interest of justice and most efficient to cancel the Show Cause Order without prejudice, given the dismissal and the likelihood of future federal regulations. You can find out more about this by clicking here. reads.
The legal troubles between Coinbase and state regulators date back to June 2023, when Vermont, along with 10 other states, issued a "Show Cause Order" accusing the exchange of violating securities laws by offering staking services without proper registration.
The 11 states argued that Coinbase's staking services qualified as unregistered securities, prompting legal action to halt the practice in certain jurisdictions.
A "show cause order" is a legal directive requiring a party to explain why a court should not take a specific action, in this case, halting Coinbase's staking services.
These legal actions began shortly after Coinbase was accused of being an unregistered clearing agency, broker and exchange by the SEC.
Under its new interim chair, the SEC is now under the leadership of a new Acting Chair. Mark UyedaGary Gensler, the previous leader of, took a more relaxed stance towards enforcement.
After the SEC’s change of heart, it has dropped numerous lawsuits brought against crypto-related companies. Binance, KrakenThen, OpenSeaOther examples include.
Sebastian Sinclair edited the book
