14-3-2025 – The US state of Vermont has abandoned its legal pursuit of Coinbase over its staking services, following the Securities and Exchange Commission’s (SEC) earlier dismissal of similar charges.
The Department of Financial Regulation’s decision, announced on 13 March, marks a notable departure from the multi-state regulatory crackdown that began in June 2023. At that time, ten American states, including Vermont, had initiated proceedings against the cryptocurrency exchange.
The regulatory landscape appears to be shifting dramatically since the departure of former SEC Chairman Gary Gensler, known for his stringent approach towards cryptocurrency oversight. Multiple cases against digital asset firms have been withdrawn, including the recent dismissal of action against Cumberland DRW.
Coinbase’s chief legal officer, Paul Grewal, welcomed Vermont’s decision whilst urging other states to follow suit. “Staking services are not securities,” Grewal declared on social media platform X, emphasising the need for regulatory clarity in the digital asset space.
The announcement comes amidst broader changes in cryptocurrency regulation, with the SEC establishing a dedicated task force to develop new guidelines for crypto products and services. This development suggests a potential softening of the previously hostile regulatory environment.
In a parallel development, Grewal has launched a Freedom of Information request to scrutinise the scope and cost of enforcement actions during Gensler’s tenure, which ran from April 2021 to January 2025.
The regulatory atmosphere appears increasingly favourable for cryptocurrency firms, with the SEC reportedly moving to conclude its long-running enforcement action against Ripple Labs, a case that has spanned more than four years.
