Coinbase cleared in South Carolina as state drops staking lawsuit

South Carolina has abandoned legal action against Cryptocurrency Exchange Coinbase, which accused it of offering unregistered titles.

The Division of Titles of the Attorney General of South Carolina rejected The case in a joint agreement with Coinbase, marking another victory for the exchange after a similar case was abandoned by the Vermont earlier this month, according to the legal director of the exchange, Paul Grewal.

“Dominoes continue to fall […] It is not only a victory for us, but for American consumers, and we hope that it is a sign of things to come in the few states that restrict the markup, “he wrote in a March 27 X post.

Southern Carolina was one of the ten states that took measures against Coinbase in June 2023, on its program of standby awards. The efforts of coordinates included states such as California, New Jersey and Illinois, following a multi-state investigation supported by the Securities and Exchange Commission of the United States.

The States said that the Coinbase ignition service was equivalent to selling unregistered titles, because users have deposited cryptographic assets to validate blockchain transactions and received rewards in return, Coinbase making a reduction.

Each state has made orders to stop ceasing and desistation and argued that the program should be recorded or respect the exemption rules under their securities laws.

The same day, the The dry has filed a complaint Affirming that Coinbase directed his platform in the United States without registering as a broker, National Securities Exchange or compensation agency since 2019.

However, the SEC abandoned its case in February 2025, the momentum changed.

According to Grewal, residents of Southern Carolina lost around $ 2 million in staunch rewards following restrictions and urged the remaining states to reconsider their positions.

The other eight states involved in similar application measures include Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington and Wisconsin.

Grewal also confirmed that the markup was live in South Carolina on all access points, including the application and the Coinbase website.

In the meantime, Coinbase continued its expansion efforts, recently suggesting potential acquisition Crypto exchange discomfort. Exchange is also preparing to reintegrate the Indian market after receive approval of the country’s financial intelligence unit.