Alabama Ends Legal Action Against Coinbase Over Staking Programs

In a significant development for the cryptocurrency industry, Alabama has dropped its enforcement action against Coinbase, marking a retreat in the regulatory crackdown on crypto staking programs in the United States. The Alabama Securities Commission had previously accused Coinbase of offering unregistered securities through its staking rewards program. However, the case has now been quietly shelved, leaving only five states pursuing similar claims against the exchange. This decision could signal a shift in the regulatory landscape for staking services, which have been under intense scrutiny by state and federal authorities. The move may also provide relief to other crypto platforms facing similar legal challenges, as regulators reassess their approach to staking and other innovative financial products in the digital asset space.

Alabama Drops Enforcement Action Against Coinbase

Alabama has abandoned its legal pursuit of Coinbase, signaling a notable retreat in the broader regulatory crackdown on crypto staking programs across the US. The Alabama Securities Commission had alleged the exchange’s staking rewards initiative amounted to an unregistered securities offering, but the case has now been quietly shelved. Only five states continue to press similar claims against the platform. Regulators had contended that staking products functioned as investment contracts, demanding compliance with securities laws—a stance now loosening in at least one jurisdiction. The move underscores the shifting terrain for crypto oversight as authorities weigh enforcement priorities.

Riot Platforms Secures $100 Million Bitcoin-Backed Credit Line from Coinbase

Riot Platforms, a North American Bitcoin mining company, has obtained a $100 million credit line from Coinbase’s credit division. The facility uses 19,223 BTC, valued at over $1.8 billion, as collateral. The short-term credit will be accessed over a two-month period to support Riot’s strategic and corporate expansion plans. By choosing this funding route, the company avoids diluting existing stakeholder ownership.