Kentucky drops Coinbase pledge lawsuit, joining Vermont, South Carolina

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MarsBit
04-02
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Mars Finance News, on April 2, according to Cointelegraph, the Kentucky Department of Financial Institutions (DFI) became the third state regulatory agency to withdraw its lawsuit against Coinbase's staking rewards program, following Vermont (March 13) and South Carolina (March 27). This class-action lawsuit, which began in June 2023, was initially launched by 11 states in sync with the SEC, accusing the trading platform's staking services of violating securities laws. Kentucky's decision to withdraw the lawsuit coincides with Governor Andy Beshear signing the "Bitcoin Rights Act" on March 24, which clearly establishes cryptocurrency self-custody protection and exempts mining activities from monetary transmission and securities law constraints. This legislation is seen as a breakthrough challenge to the federal regulatory framework. Despite the obvious trend of regulatory relaxation, seven states - Alabama, California, Illinois, Maryland, New Jersey, Washington, and Wisconsin - continue to pursue litigation against Coinbase. Coinbase's legal team is pushing for Congress to establish a federal market structure law to end the "litigation chaos of each state acting independently".

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