Three State Regulators Drop Coinbase Cases, Following SEC's Lead
Date: 2025-04-02 Author: Gabriel Deangelo Categories: BUSINESS
Regulators in Kentucky, Vermont, and South Carolina have decided to drop their cases against Coinbase, following the lead of the U.S. Securities and Exchange Commission (SEC). The SEC closed its case against the company in late February 2025.
Kentucky's financial regulator officially announced the end of the case on March 31, 2025, while South Carolina and Vermont took similar action on March 26 and March 13, respectively. However, seven other states are continuing their cases against Coinbase.
These cases initially began shortly after the SEC filed its lawsuit against the company. Ten states have accused Coinbase of violating federal law due to its Earn program. The initiative allowed users to earn income by staking crypto assets, which regulators considered an unregistered securities offering. Despite pressure, Coinbase refused to shut down the program.
Paul Grewal, Coinbase's chief legal officer, has asked Congress to draft a bill regulating crypto assets at the federal level. He emphasized that control over the industry should be exercised centrally, rather than through regional authorities, which would avoid such proceedings.
In addition to Coinbase, the SEC has also dismissed a number of other cases, which demonstrates a major shift in the regulator's strategy after the change of power in the United States. The SEC's new course assumes a more lenient approach to the crypto industry, which coincides with the political shift in the country.
Earlier, Coinbase CEO Brian Armstrong also noted that the US authorities should legalize the ability of stablecoin issuers to distribute profits among asset holders in the form of interest on reserves.
