South Carolina, U.S., Withdraws Lawsuit Against Coinbase Staking

# South Carolina Drops Staking Lawsuit Against Coinbase, Following Vermont’s Lead South Carolina has officially withdrawn its staking-related lawsuit against cryptocurrency exchange Coinbase, marking a significant development in the ongoing legal battles involving digital assets in the United States. The state made the announcement on March 27, joining Vermont, which similarly dropped its claims last month. The case stems from a broader legal offensive initiated on June 6, 2023, when the U.S. Securities and Exchange Commission (SEC), alongside ten states including South Carolina, sued Coinbase for allegedly offering unregistered securities. Participating states included Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington, and Wisconsin. Paul Grewal, Coinbase’s Chief Legal Officer (CLO), celebrated the withdrawal on X (formerly Twitter), writing, “This is not just a victory for Coinbase, but for American consumers. The dominoes keep falling, and staking will very soon be back for Coinbase users in South Carolina. We hope other states also reconsider their approach to regulation.” Grewal further noted that the lawsuit had prevented South Carolina residents from receiving an estimated $2 million in staking rewards, underscoring the financial impact on local consumers. # Strategic Digital Asset Preparedness Act Introduced in South Carolina In a related development, South Carolina introduced the "Strategic Digital Asset Preparedness Act" on the same day. The proposed legislation permits the state treasury to allocate up to 10% of its funds to investments in digital assets such as Bitcoin(BTC), signaling a more progressive stance toward cryptocurrencies. The dual announcements highlight evolving regulatory attitudes toward digital assets in the U.S., with some states stepping back from litigation and others exploring proactive measures to integrate cryptocurrencies into their financial frameworks.