Coinbase logo on smartphone screen laying on computer keyboard. Source: 24K-Production - stock.adobe.com

Key Takeaways:

South Carolina has dropped its staking lawsuit against Coinbase, following Vermont’s lead.
The lawsuit was dismissed via a joint stipulation, part of broader enforcement actions initiated in June 2023.
Coinbase claims South Carolina residents lost ~$2M in staking rewards during the ban.

South Carolina has dismissed its lawsuit against Coinbase over the company’s crypto staking services, becoming the second state after Vermont to do so.

The decision was formalized through a joint stipulation filed on March 27 by Coinbase and the South Carolina Attorney General’s securities division.

We appreciate the work of Attorney General @AGAlanWilson to get this issue resolved for SC consumers. You can read the full filing here: https://t.co/3N1iA4bNrY 3/3
— paulgrewal.eth (@iampaulgrewal) March 27, 2025

The lawsuit, initially filed alongside nine other states on June 6, 2023—the same day the U.S. Securities and Exchange Commission (SEC) sued Coinbase—accused the platform of offering unregistered securities via its staking program.

The SEC dropped its case on February 27, 2025.

Paul Grewal, Coinbase’s chief legal officer, called South Carolina’s move a win for both the company and consumers, expressing hope that other states will follow.

According to Grewal, the legal action denied South Carolina residents about $2 million in potential staking rewards.

Remaining states with active enforcement include Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington, and Wisconsin.

Grewal emphasized the need for clear regulatory frameworks, stating that the 52 million Americans who own crypto deserve fair protections and clearer rules.