Alabama Drops Lawsuit Against Coinbase

The Alabama Securities Commission has dropped its lawsuit against cryptocurrency exchange Coinbase, which was based on alleged securities law violations.

Court documents reveal that the commission decided to withdraw the lawsuit to allow policymakers ample time for discussion following the establishment of a cryptocurrency task force by the US Securities and Exchange Commission (SEC).

Initially, in June 2023, the Alabama Securities Commission accused Coinbase of violating securities laws through its staking services. Regulatory agencies from nine other states, including California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin, also joined the lawsuit.