Vermont Drops Coinbase Staking Case After SEC Backs Off

The state’s Department of Financial Regulation announced on March 13 that it would rescind its “show cause” order.

The regulator explained that with the SEC no longer pursuing the matter and new federal guidance expected, it made sense to step back. The department stated, "The SEC has announced the formation of a new task force to, among other things, provide guidance for the promulgation of rules regarding the regulation of cryptocurrency products and services".

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Given this shift, Vermont’s regulators determined that dropping the case was "most efficient and in the best interests of justice".

Following Vermont’s decision, Coinbase’s Chief Legal Officer Paul Grewal responded on X, stating:

As we have always said: staking services are not securities. We applaud Vermont for embracing progress and providing clarity for its citizens who own digital assets.

Grewal also emphasized the need for clear national policies, stating that Congress should take advantage of the bipartisan push for crypto regulations that address the unique aspects of digital assets, including staking.

Vermont was one of ten states that took action against Coinbase in June 2023, the same day the SEC filed its lawsuit. These states argued that the company was offering staking services without proper authorization and demanded it justify why the courts shouldn’t force it to stop.

Recently, the SEC officially closed its investigation into Yuga Labs, the company behind several well-known non-fungible token (NFT) collections. What did the company say about it? Read the full story.