Kentucky has officially dismissed its staking lawsuit against Coinbase, marking another legal victory for the cryptocurrency exchange. The Kentucky Department of Financial Institutions filed a joint motion to end the case, following similar actions taken by Vermont and South Carolina. The dismissal was issued without prejudice, leaving the door open for a potential return of staking services in the state.
The decision comes shortly after the signing of the Bitcoin Rights legislation, which clarified that staking and mining do not fall under securities regulations. The bipartisan support for the bill likely influenced Kentucky’s move to abandon its legal challenge.
Push for Federal Staking Regulations
Paul Grewal, Coinbase’s Chief Legal Officer, welcomed the decision and emphasized the need for a unified regulatory framework. “Governor Andy Beshear’s Department of Financial Institutions has followed suit by dismissing Kentucky’s staking lawsuit against Coinbase, just as Vermont and South Carolina recently did,” Grewal wrote on X.
Grewal criticized the current system, where individual states set their own staking policies, leading to inconsistent regulations across the country. He urged the U.S. Congress to establish a federal market structure law to provide clarity for crypto businesses and consumers.
Future of Staking in the U.S.
While Grewal did not provide specifics on a federal framework, he expressed optimism that more states will lift restrictions on staking services. The recent legal dismissals signal a shifting regulatory environment, potentially paving the way for broader acceptance of crypto staking in the U.S.
As Coinbase continues its push for federal oversight, the debate over staking regulation remains a critical issue for the cryptocurrency industry.
