South Carolina Withdraws Lawsuit Against Coinbase Custody Service

The US state of South Carolina has withdrawn its lawsuit against the leading crypto exchange, Coinbase Custody service.

Coinbase’s Chief Legal Officer, Paul Grewal, revealed in a post that South Carolina has now joined Vermont in dismissing the baseless staking lawsuit against Coinbase. As a result, South Carolina Coinbase users will soon be able to use the staking feature again.

The South Carolina vs Coinbase Case

As part of this lawsuit, South Carolina residents were estimated to have lost $2 million in staking rewards. Grewal took to X to notify users about the development: “The 52 million Americans who own cryptocurrency deserve reasonable consumer protection and clear rules. We commend South Carolina for standing up for justice and hope that other states that still prohibit staking take note.”

According to Grewal, the lawsuit was resolved with the cooperation of Attorney General Alan Wilson.

South Carolina Withdraws Lawsuit Against Coinbase Custody Service

The official filing states, “Pursuant to S.C. Code of Regulations 13-604(X), the Division and the Respondents stipulate that this matter be dismissed, without costs or fees to either the Division or the Respondents, and the Order be vacated as of the date of this joint stipulation.”

Since Donald Trump’s tenure as US President, several crypto firms have seen resolutions to their respective litigations. In fact, the US Securities and Exchange Commission (SEC) also recently ended investigations into crypto firms, including Crypto.com, Kraken, Cumberland, ConsenSys, and the Web3 gaming firm Immutable.