South Carolina has become the latest to dismiss lawsuits against Crypto Exchange Coinbase as it denounced the crypto exchange for providing unregistered securities.
The lawsuit was formally dismissed on March 27th in a joint provision between the crypto exchange and the South Carolina Attorney General’s Securities Department.
“South Carolina has joined Vermont to dismiss an unfounded staking lawsuit against Coinbase,” the company’s chief legal officer, Paul Growal, said on the X-Post on March 27th.
“This is not just a victory for us, but a sign for American consumers that it will come to a few states that limit staking.”
Joint provisions between South Carolina Attorney General and Coinbase. Source: South Carolina Attorney General
South Carolina and Vermont were two of the 10 US states that took legal action against Coinbase’s staking services on June 6, 2023.
The Securities and Exchange Commission officially dismissed the lawsuit on February 27, 2025.
The other eight USes that filed enforcement action, as well as South Carolina, were Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington and Wisconsin.
grewal said he hopes other states will follow the lawsuit, and South Carolina residents hope that they have lost an estimated $2 million in staking reward as a result of the lawsuit.
“The 52 million Americans who own the code deserve common sense consumer protection and clear rules,” he said. “We praise South Carolina for standing up for justice and hope that the rest of the states have banned staking.”
South Carolina introduces Bitcoin Reserve Bill
Meanwhile, state lawmakers just introduced the South Carolina Strategic Digital Asset Preparation Act on March 27th, allowing state treasurers to allocate 10% of certain state funds to cryptocurrencies such as Bitcoin (BTC).
Unlike most US state crypto reserve bills, North Carolina House Bill 4256, introduced by Rep. Jordan Pace, has mentioned several times Bitcoin, a strategic digital asset reserve that the bill is trying to establish.
Source: Jordan Pace
The bill will allow South Carolina treasurer, Curtis Loftis, now the state of Bitcoin sanctuary, to establish a Bitcoin sanctuary that exceeds 1 million units or less.
Treasurer may add Bitcoin to the South Carolina General Fund. This is the Budget Stabilization Reserve Fund, the other investment fund they manage.
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While no mention of Stablecoins, fungible tokens, Ether (ETH) or other crypto tokens was made, the House bill said that strategic digital asset reserves are not limited to Bitcoin.
Bitcoin laws have introduced 42 Bitcoin reserve bills at the state level of 19 states, with 36 of these 42 bills remaining.
Earlier this month, US President Donald Trump signed an executive order to create strategic Bitcoin reserves and digital asset stockpile.
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