South Carolina follows Vermont in reversing Coinbase staking restrictions

South Carolina has dismissed a lawsuit against cryptocurrency exchange Coinbase over its staking services, following the lead of Vermont, which previously dismissed the same lawsuit.
Coinbase called this a "victory for American consumers." On the 27th (local time), South Carolina, in a joint agreement with Coinbase, announced that the Securities Division under the State Attorney General
Coinbase has formally dropped the lawsuit it filed against it. Coinbase Chief Legal Officer Paul Grewal said in a post on X that "South Carolina has followed Vermont's lead and filed suit against Coinbase.
"This is not just a victory for us, it's a victory for American consumers. Some states that have restrictions on staking have also rejected the baseless staking lawsuit against us," he said.
"We hope that drastic changes will continue," he said. South Carolina and Vermont are expected to file federal charges against Coinbase on June 6, 2023, when the U.S. Securities and Exchange Commission (SEC) issues federal charges against Coinbase.
The lawsuit was filed on the same day as one of 10 states that took legal action against Coinbase's staking service.
The SEC formally dismissed the case on February 27, 2025.
Eight other states have filed lawsuits similar to South Carolina's: Alabama, California, Illinois, Kentucky, and Pennsylvania.
The states are Tucson, Maryland, New Jersey, Washington and Wisconsin. Grewal said South Carolina residents are seeking roughly $2 million in damages from the lawsuit.
They claim they have lost staking rewards and urge other states to follow suit.