South Carolina has officially dismissed its lawsuit against Coinbase, which had accused the crypto exchange of offering unregistered securities through its staking services. The lawsuit was dropped through a joint stipulation filed on March 27 by Coinbase and the South Carolina Attorney General’s securities division. Paul Grewal, Coinbase’s chief legal officer, announced the victory on X, noting that South Carolina had now joined Vermont in dismissing its legal action against Coinbase . Another Win for Coinbase Both states were part of a group of 10 US states that sued Coinbase over its staking services on June 6, 2023—the same day the US Securities and Exchange Commission (SEC) filed its own lawsuit against the firm. The SEC ultimately dismissed its case on February 27, 2025, marking a broader retreat from its previous aggressive enforcement actions against crypto platforms. However, eight states—including California, Illinois, and New Jersey—still have active cases against Coinbase. Grewal expressed hope that other states would follow South Carolina’s lead, while criticizing the lawsuit for costing state residents roughly $2 million in lost staking rewards. He emphasized the need for clear regulatory guidelines, stating, “The 52 million Americans who own crypto deserve commonsense consumer protections and clear rules.” South Carolina Eyes Bitcoin Reserve In a parallel move, South Carolina is taking a proactive stance on crypto adoption. On March 27, state lawmaker Rep. Jordan Pace introduced the Strategic Digital Assets Reserve Act, which could allow the state to allocate up to 10% of certain public funds to cryptocurrencies like Bitcoin. The bill grants the state treasurer, Curtis Loftis, the authority to establish a Bitcoin reserve with a ceiling of 1 million BTC—a bold move that mirrors the US federal government’s recent Strategic Bitcoin Reserve initiative. Under the bill, the treasurer could add Bitcoin holdings to the General Fund, the Budget Stabilization Reserve Fund, or any other investment funds the state manages. Interestingly, the bill excludes stablecoins, NFTs, and other altcoins, focusing exclusively on Bitcoin. While 42 Bitcoin reserve bills have been introduced in 19 US states, 36 remain live, signaling growing interest in state-level crypto reserves. The post South Carolina Drops Coinbase Lawsuit as State Introduces Bitcoin Reserve Bill appeared first on TheCoinrise.com .