Illinois Plans to Withdraw Staking Lawsuit Against Coinbase
In a significant development, the state of Illinois is set to withdraw its staking lawsuit against Coinbase, aligning itself with three other U.S. states that have recently decided to drop legal actions against the popular cryptocurrency exchange. A representative from the office of Illinois Secretary of State Alexi Giannoulias confirmed this news to CoinDesk on Thursday, stating that the office “intends to drop the Coinbase lawsuit.” However, the spokesperson did not provide a timeline for when this dismissal might occur.
Illinois was among ten states that initiated legal proceedings against Coinbase in 2023, accusing the exchange of breaching state securities laws through its staking program. In addition to state-level actions, the U.S. Securities and Exchange Commission (SEC) also charged Coinbase with violating federal securities regulations related to its staking product but ultimately dropped that lawsuit in February. Following the SEC’s retreat, several state securities regulators, including those from Kentucky, Vermont, and South Carolina, have similarly abandoned their individual cases against the exchange.
The states that still have pending lawsuits related to staking against Coinbase include Alabama, California, Maryland, New Jersey, Washington, and Wisconsin. When approached for comments on the ongoing litigation, representatives from California, Maryland, and Wisconsin opted not to provide any statements. Meanwhile, a spokesperson for the New Jersey Bureau of Securities indicated that the “Coinbase matter remains open,” while Bill Beatty, the securities administrator for the Washington Department of Financial Institutions, confirmed that the state’s “case with Coinbase remains ongoing at this time.” The Alabama Securities Commission did not respond to CoinDesk’s inquiry regarding their stance.
