Alabama Withdraws Staking Lawsuit Against Coinbase

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The Alabama Securities Commission has withdrawn its lawsuit against crypto exchange Coinbase, which accused the company of violating securities laws through its staking services.

The decision comes as the US Securities and Exchange Commission (SEC) and the crypto industry work towards establishing clear regulations, according to an April 23 legal filing shared by Coinbase’s chief legal officer, Paul Grewal.

The filing noted, “The SEC has announced the formation of a new task force to provide guidance on rules for regulating cryptocurrency products and services.” It added, “Given this development, the Commission believes it is appropriate to allow policymakers time to consider regulatory frameworks.”

The lawsuit was originally filed by the Alabama Securities Commission in June 2023, along with regulators from California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin.