The US State Vermont lowered the “Show Cause Order” against the Crypto Exchange Coinbase for allegedly offering unregistered security to users through a staking service.
The Vermont Department of Finance said on a March 13 order that in the US Securities and Exchange Commission light Its case was thrown in Feb. 28It will follow the suit and save its action against the Coinbase without caution.
“The SEC announced the development of a new task force in, among other things, providing guidance for the promulgation of policies regarding the regulation of cryptocurrency products and services,” the department said.
Vermont’s financial regulator decided to overthrow legal action against the Coinbase. Source: Vermont financial regulation department of financial regulation
“In connection with the removal of federal actions and the possibility of new federal regulatory guidance, the division believes it will be better and in the best interests of justice to save the pending cause of adoption, without care.”
On the same day the SEC filed its lawsuit in June 2023, US states of Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin said they were Launching legal proceedings against Coinbase.
The order of the cause of the adverb -following Iiniit That Coinbase violates security laws by offering its users without a license and asked the exchange to provide a reason why the courts should not press an order directing them to stop the service.
Now that Vermont was selected, Coinbase Chief Legal Officer Paul Grewal said on a March 13 statement In X that other states with staking actions should make a “page from Vermont playbook.”
Source: Paul Grewal
“As we have always said: Staking services are not security. We applaud Vermont for embracing the development and clarity for its citizens who owned digital assets,” he said.
“Our work is not finished. Congress should occupy the bipartisan momentum we see throughout the Chamber and Senate to pass the comprehensive law that is considered the features of the novel of digital possessions, such as staking,” he added.
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A growing number of companies faced with legal action from the SEC has eliminated their cases at the end of the former Sec chair gary genslerwho performed a hardline bearing toward the crypto, resigned on January 20.
Crypto trading firm Cumberland DRW belongs to Latest drops its case on March 4While the regulator has been reported Wrapping the action of its implementation against the ripple labs After more than four years.
Grewal also has Launched a request under the Freedom of Information Act To find out how many actions that implemented the brought against Crypto firms Under Gensler’s tenure between April 17, 2021, and January 20, 2025, and the taxpayer costs.
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