Illinois Joins States Dismissing Coinbase Lawsuits

Illinois is set to dismiss its lawsuit against Coinbase, becoming the fourth state to do so after Vermont, South Carolina, and Kentucky, which have all dropped similar cases against the exchange’s staking services. These dismissals follow the SEC's earlier decision to withdraw its federal lawsuit against Coinbase, suggesting a shift in regulatory approaches. Coinbase's Chief Legal Officer, Paul Grewal, has called for a federal regulatory framework to replace the current state-by-state litigation strategy. Despite these withdrawals, seven states, including California, New Jersey, Washington, Alabama, Maryland, and Wisconsin, continue their legal actions against Coinbase. The broader regulatory trend coincides with the passing of pro-crypto legislation, such as Kentucky's House Bill 701, which protects digital asset rights and exempts certain crypto activities from securities laws.