The Alabama Securities Commission has dropped its lawsuit against Coinbase, ending the legal challenge that accused the crypto exchange of violating securities laws through its staking services.
In a legal filing dated April 23, shared by Coinbase Chief Legal Officer Paul Grewal, the regulator cited ongoing efforts between the U.S. Securities and Exchange Commission (SEC) and the crypto industry to develop clearer regulatory guidelines.
The filing noted that the SEC has launched a new task force to provide guidance on regulating cryptocurrency products and services. Consequently, the commission believes it is wise to allow policymakers time to consider regulatory frameworks.
Alabama was one of ten U.S. states—including California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin—that took coordinated actions against Coinbase in June 2023 for alleged violations related to its staking program.
