PANews reported on April 1st that according to Decrypt, just days after South Carolina withdrew its lawsuit against Coinbase's crypto exchange, Kentucky became the third state in weeks to take similar action following Vermont's exit last month. The Kentucky Department of Financial Institutions submitted a joint dismissal agreement on Monday, effectively ending its legal proceedings against Coinbase's staking services. Previously, the service was accused of violating state securities laws. Coinbase's Chief Legal Officer Paul Grewal subsequently posted on X platform, saying: "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 14th, citing that the federal lawsuit had been dismissed and clearer nationwide regulations were possible. South Carolina followed suit days later, with Grewal noting that due to the ban, residents lost approximately $2 million in staking rewards.
