Vermont drops legal action against Coinbase for unregistered staking services

From Cointelegraph
March 13, 2025 9:06:30 PM:

Vermont drops “show cause order” against Coinbase for unregistered securities offered through staking service. Vermont’s Department of Financial Regulation rescinded order after SEC dismissed case. Vermont’s financial regulator cited new SEC task force on crypto regulation as reason for dropping legal action.

Coinbase faced legal action from multiple US states in June 2023 including Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin. Vermont’s show cause order accused Coinbase of violating securities laws by offering staking without a license.

Coinbase’s chief legal officer, Paul Grewal, praised Vermont’s decision and urged other states to follow suit. Grewal emphasized that staking services are not securities and called for comprehensive legislation in Congress to address digital asset features like staking.

Former SEC Chair Gary Gensler’s resignation has led to dismissal of several enforcement cases against crypto firms. Cumberland DRW recently had its case dropped, while Ripple Labs is reportedly nearing the end of its enforcement action. Grewal has requested information on enforcement actions and costs under Gensler’s tenure.

Read more at Cointelegraph: Vermont follows SEC’s lead, drops staking legal action against Coinbase