Kentucky joins Vermont and South Carolina in dropping Coinbase staking suit

Kentucky’s Department of Financial Institutions is the third state-level regulator in the past month to drop its action over Coinbase’s staking rewards.

Kentucky’s finance watchdog has dismissed its lawsuit against Coinbase over the exchange’s staking rewards program, following its peers in Vermont and South Carolina.

Kentucky’s Department of Financial Institutions filed the stipulation to dismiss jointly with Coinbase on April 1, ending the state’s legal action against the exchange first filed along with 10 other state regulators in June 2023.

Coinbase chief legal officer Paul Grewal posted to X on April 1, calling for Congress “to end this litigation-driven, state-by-state approach with a federal market structure law.”

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