Illinois to Drop Lawsuit Against Coinbase Over Staking Program
Illinois is set to drop its staking lawsuit against cryptocurrency exchange Coinbase, following the lead of three other U.S. states. The decision to back down from litigation against the exchange marks a significant development in the ongoing legal battle surrounding Coinbase’s staking program.
State’s Decision
A spokesperson for Illinois Secretary of State Alexi Giannoulias confirmed to CoinDesk that the office “intends to drop the Coinbase lawsuit.” However, no specific timeline was provided for when the case may be officially dropped.
Background
Illinois was among 10 U.S. states that filed charges against Coinbase in 2023, alleging that the exchange had violated state securities laws with its staking program. The U.S. Securities and Exchange Commission (SEC) had also charged Coinbase with violating federal securities laws in relation to its staking product, but the federal case was dropped in February. Following the SEC’s decision, state securities regulators in Kentucky, Vermont, and South Carolina have also abandoned their respective cases against Coinbase.
Current Status
Despite Illinois’ decision to drop the lawsuit, several states still have pending staking-related suits against Coinbase. These states include Alabama, California, Maryland, New Jersey, Washington, and Wisconsin. While spokespeople for California, Maryland, and Wisconsin declined to comment on ongoing litigation, a representative for the New Jersey Bureau of Securities stated that the “Coinbase matter remains open.” Bill Beatty, securities administrator for the Washington Department of Financial Institutions, confirmed that the state’s case with Coinbase is still ongoing.
The Alabama Securities Commission did not respond to requests for comment on the status of the lawsuit.