A legal challenge from South Carolina aimed at Coinbase’s staking service has quietly come to an end.
A filing made on March 27 confirms that both the state’s Attorney General’s securities division and Coinbase agreed to dismiss the case. Originally launched in June 2023, the complaint had focused on claims that Coinbase’s staking program amounted to offering financial products without proper registration.
That same day last year, the company also faced federal pressure from the SEC—though that separate case was tossed earlier this year.
Paul Grewal, Coinbase’s Chief Legal Officer, responded on X with optimism, saying,
“South Carolina just joined Vermont to dismiss its unfounded staking lawsuit against Coinbase,”
and called it a win for both the platform and everyday users in the U.S. He also pointed out that residents had missed out on around $2 million in rewards due to the case.
South Carolina was one of 10 states that filed enforcement actions last summer. So far, only Vermont and now South Carolina have walked back their claims. The others—including California, New Jersey, and Illinois—have yet to drop theirs.
Alongside the dismissal, South Carolina also introduced a bold new bill aimed at embracing digital assets. The “Strategic Digital Assets Reserve Act,” filed the same day the case was closed, proposes allocating up to 10% of certain state funds into assets like Bitcoin.
Filed by Representative Jordan Pace, the bill mentions the creation of a dedicated digital reserve and grants the State Treasurer authority to hold and invest in Bitcoin for several key funds across the state. Though Bitcoin is the focus, the bill leaves the door open for other assets too.
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