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South Carolina is the latest U.S. state to drop its lawsuit against Coinbase, a crypto exchange, over its staking services. The state had previously accused Coinbase of offering unregistered securities through these services.
The dismissed was made official on March 27 through a joint agreement between Coinbase and the South Carolina Attorney General’s securities division.
On the same day, Coinbase's Chief Legal Officer, Paul Grewal, announced the news on X, saying, "South Carolina has joined Vermont in dismissing its bogus staking case against Coinbase. This is a win not only for us but for American consumers. We hope other states with staking restrictions will follow suit.”
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Source: South Carolina Attorney General
South Carolina and Vermont were among 10 U.S. states that filed legal actions against Coinbase’s staking services on June 6, 2023 — the same day the federal Securities and Exchange Commission (SEC) filed its own lawsuit against the exchange. The SEC officially dismissed its lawsuit on February 27, 2025.
The other eight states pursuing similar action were Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington, and Wisconsin.
Grewal expressed hope that more states would dismiss their lawsuits, noting that South Carolina residents missed out on approximately $2 million in staking rewards due to the legal action.
“The 52 million Americans who own crypto deserve clear rules and practical consumer protections,” Grewal added. “We commend South Carolina for standing up for justice and encourage other states with staking bans to take notice.”
South Carolina Introduces Bitcoin Reserve Bill
Meanwhile, on March 27, a state lawmaker introduced the “Strategic Digital Assets Reserve Act of South Carolina,” which could allow the state treasurer to allocate up to 10% of specific state funds to cryptocurrencies like Bitcoin.
Unlike most state crypto reserve bills, North Carolina’s House Bill 4256, introduced by Rep. Jordan Pace, specifically mentions Bitcoin multiple times as part of the Strategic Digital Assets Reserve it aims to establish.
The bill would permit South Carolina’s treasurer, currently Curtis Loftis, to establish a Bitcoin reserve of up to 1 million Bitcoin. This ambitious limit aligns with a similar target set by the U.S. federal government for its newly established Strategic Bitcoin Reserve.
The treasurer could add Bitcoin to South Carolina’s General Fund, Budget Stabilization Reserve Fund, or any other investment fund under their management.
Although the bill does not mention stablecoins, non-fungible tokens (NFTs), Ether, or other cryptocurrencies, it states that the Strategic Digital Assets Reserve wouldn’t be limited to Bitcoin alone.
According to Bitcoin Law, 42 Bitcoin reserve bills have been introduced across 19 states, with 36 of those bills still active.
Earlier this month, U.S. President Donald Trump signed an executive order to create both a Strategic Bitcoin Reserve and a Digital Asset Stockpile. These reserves will initially be funded with cryptocurrency seized from government criminal cases.