Kentucky joins South Carolina and Vermont in dropping lawsuit against Coinbase

According to Decrypt, just days after South Carolina withdrew its staking lawsuit against the crypto exchange Coinbase, Kentucky became the third state to take the same action in a few weeks after Vermont withdrew last month. The Kentucky Department of Financial Institutions filed an agreement to jointly withdraw the lawsuit on Monday, effectively ending its legal action against Coinbase's staking service.

Previously, the service was accused of violating state securities laws. Coinbase Chief Legal Officer Paul Grewal then posted on the X platform: "Congress needs to pass a federal market structure law as soon as possible to end this state-by-state litigation approach."

Vermont withdrew from the case on March 14, arguing that the federal lawsuit had been withdrawn and that clearer national regulations were possible. South Carolina followed suit a few days later, with Grewal noting that residents of the state lost about $2 million in staking rewards due to the ban."