- South Carolina dropped its staking lawsuit against Coinbase on March 27.
- The lawsuit accused Coinbase of offering unregistered securities.
South Carolina has dismissed its lawsuit against Coinbase over its staking services, following Vermont’s lead. The lawsuit accused Coinbase of offering unregistered securities. The state’s decision marks a significant shift in regulatory actions against crypto staking in the U.S.
On March 27, Coinbase and the South Carolina Attorney General’s securities division reached a joint agreement to dismiss the case. Paul Grewal, Coinbase’s chief legal officer, announced the news on X, calling it a win for American consumers. He urged other states to reconsider their stance on staking.
South Carolina and Vermont were among the ten U.S. states that sued Coinbase on June 6, 2023. That was the same day the SEC filed its lawsuit against the exchange. The federal regulator officially dropped its case on February 27, 2025.
Grewal stated that South Carolina residents lost an estimated $2 million in staking rewards due to the lawsuit. He emphasized the need for clear regulations and consumer protections for the 52 million Americans who own crypto.
Meanwhile, South Carolina lawmakers introduced a new bill supporting Bitcoin reserves. The Strategic Digital Assets Reserve Act of South Carolina seeks to allocate up to 10% of selected state funds to cryptocurrencies, including Bitcoin.
Push for Bitcoin Reserve
Rep. Jordan Pace introduced House Bill 4256, which explicitly mentions Bitcoin multiple times. If passed, the bill would allow state treasurer Curtis Loftis to manage a Bitcoin reserve. The reserve could hold up to 1 million BTC, aligning with the U.S. federal government’s Strategic Bitcoin Reserve plans.
The bill permits Bitcoin investments in the General Fund, the Budget Stabilization Reserve Fund, and other state-managed assets. It does not mention stablecoins, NFTs, Ether, or other crypto tokens. However, it clarifies that the Strategic Digital Assets Reserve is not limited to Bitcoin.
Bitcoin reserve bills have been introduced in 19 states. Lawmakers have kept 36 of them active. Earlier this month, U.S. President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve and Digital Asset Stockpile.
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