Coinbase News: Kentucky Drops Lawsuit Against Coinbase Over Crypto-Staking Services Amid Regulatory Shift

In a significant development for the cryptocurrency industry, Kentucky has officially dropped its lawsuit against Coinbase regarding the exchange’s crypto-staking services. This move indicates a broader shift in regulatory sentiment towards digital assets and blockchain technology.

Kentucky Drops Coinbase’s Staking Lawsuit Amid Regulatory Shift

Kentucky has officially dropped its lawsuit against Coinbase over the exchange’s crypto-staking services. According to a joint filing submitted on March 31, the state’s Department of Financial Institutions dismissed the case without prejudice, signaling a broader shift in regulatory sentiment. Paul Grewal, Coinbase’s Chief Legal Officer, responded by highlighting the growing momentum in favor of crypto. He noted that Kentucky’s decision mirrors similar actions taken by Vermont and South Carolina, and emphasized the need for Congress to establish a national regulatory framework, arguing that the patchwork of state lawsuits is inefficient and unsustainable.

Top Lawmaker Opposes Interest-Bearing Stablecoins on Coinbase

As stablecoin legislation progresses in Congress, crypto leaders are appealing for favorable bills, but encountering resistance from lawmakers. One major sticking point is whether U.S.-regulated stablecoins should be allowed to offer interest to holders. Coinbase, for example, currently provides users with a 4.1% APY on their USDC deposits, making stablecoins competitive with traditional bank savings accounts that offer much lower interest rates. However, the current bills in the House and Senate prohibit stablecoins from offering interest or yield to their holders.