EddieJayonCrypto
23 Apr 25
The Alabama Securities Commission has withdrawn its lawsuit against Coinbase over the exchange’s staking program, reducing active state lawsuits from ten to five. This procedural pause allows time for evolving federal regulatory guidance following the SEC’s announcement of a new crypto-focused task ...
The Alabama Securities Commission has officially withdrawn its legal action against Coinbase over the exchange’s staking program, reducing active state lawsuits from ten to five.According to the April 23 consent order signed by Commission Director Amanda L. Senn, the withdrawal is procedural, allowing time for evolving federal policy discussions following the SEC’s announcement of a new crypto-focused task force. Importantly, this step does not signify a change in regulatory stance but rather a pause to accommodate emerging federal standards.Coinbase consented to the withdrawal, with both parties agreeing to bear their own legal costs. Coinbase’s chief legal officer, Paul Grewal, responded by urging remaining states to reconsider enforcement and called for congressional action to establish a unified federal legal framework for crypto staking.Active lawsuits against Coinbase’s staking services remain in California, Maryland, New Jersey, South Carolina, and Wisconsin. These enforcement actions originated from a multistate investigation supported by the SEC, which targeted staking programs as potentially unregistered securities requiring compliance with securities registration laws.The decision by Alabama follows a federal court’s dismissal in February of a parallel SEC case against Coinbase, which alleged similar violations regarding unregistered securities sales via its staking program.This procedural pause signals a critical moment in the broader effort to harmonize crypto regulation across jurisdictions, reflecting shifting priorities towards clearer federal guidelines and away from fragmented state-level enforcement.