South Carolina Joins Vermont in Dismissing Lawsuit Against Coinbase
The lawsuit filed by South Carolina was dismissed in a joint stipulation between Coinbase and the South Carolina Attorney General’s securities division. This marks a key moment in the legal dispute over staking services. Coinbase’s Chief Legal Officer, Paul Grewal, praised the dismissal, viewing it as a victory for consumers and signaling that the legal landscape for staking may be shifting.
Impact of South Carolina’s Dismissal on the Lawsuits
The dismissal of the South Carolina lawsuit marks a significant step in the ongoing legal battles over staking services in the U.S. In total, South Carolina was one of ten states to pursue similar legal actions, including Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington, and Wisconsin. Following South Carolina’s decision, Coinbase expressed its hope that other states with staking restrictions would also reconsider their legal actions.
South Carolina Introduces Bitcoin Reserve Bill
In a related development, a new bill, the Strategic Digital Assets Reserve Act of South Carolina, was introduced on March 27, 2025. This bill allows the state’s treasurer, Curtis Loftis, to allocate up to 10% of certain state funds to digital assets such as Bitcoin. The bill allows for the creation of a Bitcoin reserve, setting a ceiling of 1 million Bitcoin in state funds.
This move is part of a broader trend in U.S. states, with 42 Bitcoin reserve bills already introduced across 19 states. The introduction of the bill shows South Carolina’s continued interest in digital assets, particularly Bitcoin, as a potential asset class for state investments.
Broader Context of State-Level Crypto Legislation
The legal landscape surrounding staking services continues to evolve. Some states are taking action to restrict or regulate staking, while others seek clearer rules for digital assets. According to Bitcoin Law, 42 Bitcoin reserve bills have been introduced across 19 U.S. states, with 36 of those bills still active.
