South Carolina Drops Lawsuit, Boosting Coinbase's Staking Revival
28.03.2025 08:00
South Carolina has dismissed its lawsuit against Coinbase, which accused the exchange of offering unregistered securities through its staking rewards program. This dismissal comes in conjunction with similar actions in other states, reinforcing Coinbase's position as legal pressures ease. Previously, South Carolina had joined a coalition of states—including California, New Jersey, and Illinois—in targeting Coinbase's staking service. These states contended that accumulating rewards through staking amounted to the sale of unregistered securities. With the case dropped, Coinbase's staking services have been fully reinstated for residents in South Carolina, enabling users to once again earn rewards through the platform. Alongside this development, Coinbase is reportedly exploring expansion opportunities, including a potential acquisition of the crypto exchange Deribit and plans to re-enter the Indian market after receiving regulatory clearance. The cumulative effect of these moves signals a broader challenge to restrictive state-level policies and may encourage other regions to reconsider their stance on staking services.
The positive resolution of the lawsuit is likely to boost investor sentiment toward COIN in the short term, as the removal of regulatory uncertainty enhances confidence. Immediate price appreciation is expected due to the revival of staking services, particularly as reinstated product offerings can attract more users. In the long term, Coinbase's strategy of expanding into new markets—including potential acquisitions and re-entry into markets like India—adds further growth catalysts. Although broader regulatory challenges persist, the resolution of this legal issue, in conjunction with previous similar dismissals, suggests an overall upward trend supported by strengthened institutional interest and improved market liquidity.