Last updated on March 15th, 2025 at 09:07 am
Vermont’s Department of Financial Regulation has withdrawn its legal challenge against Coinbase, marking another victory for the crypto exchange amid shifting regulatory tides in the United States.
The decision, announced on March 13, follows the U.S. Securities and Exchange Commission’s (SEC) dismissal of its case against Coinbase on February 28.
The Vermont regulator cited the SEC’s move and the anticipated introduction of new federal cryptocurrency regulations as key reasons for rescinding its “show cause order” against the exchange.
As part of a broader multi-state crackdown in 2023, the regulator initially accused Coinbase of offering an unregistered securities service through its staking program. It required the exchange to justify why it shouldn’t be ordered to halt the service.
Vermont was among ten U.S. states, including Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Washington, and Wisconsin, that took legal action against Coinbase the same day the SEC sued the exchange in June 2023.
With Vermont now stepping back, Coinbase’s Chief Legal Officer Paul Grewal urged other states to follow suit.
“As we have always said: staking services are not securities,”
Grewal said in a March 13 statement on X.
“We applaud Vermont for embracing progress and providing clarity for its citizens who own digital assets.”
He also called on Congress to capitalize on growing bipartisan momentum and enact comprehensive crypto legislation, particularly addressing staking services.
The Vermont decision aligns with a broader trend of SEC enforcement cases unravelling in recent months. Since the resignation of former SEC Chair Gary Gensler on January 20, several firms have seen their cases dismissed. Crypto trading firm Cumberland DRW had its charges dropped on March 4, while reports suggest the SEC is nearing the conclusion of its long-running lawsuit against Ripple Labs.
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