Kentucky Drops Staking Suit Against Coinbase

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Kentucky’s finance regulator has dropped its lawsuit against Coinbase regarding the exchange’s staking rewards program, following similar actions by Vermont and South Carolina.

On April 1, Kentucky’s Department of Financial Institutions filed a joint stipulation with Coinbase to dismiss the case, ending the legal action that began with 10 other state regulators in June 2023.

Coinbase’s chief legal officer, Paul Grewal, urged Congress to address this issue with a federal market structure law.

In June 2023, financial regulators from 10 states filed similar lawsuits against Coinbase on the same day the Securities and Exchange Commission (SEC) took legal action against the exchange, a case the SEC recently dropped.

The states of Alabama, California, Illinois, Maryland, New Jersey, Washington, and Wisconsin are still pursuing their lawsuits, alleging that Coinbase violated securities laws with its staking rewards program.