The Alabama Securities Commission has withdrawn its lawsuit against Coinbase, which alleged violations of securities laws related to the company's staking services. The decision follows a trend among U.S. states, where half of the states that initiated litigation against Coinbase in 2023 have now dropped their cases. The Commission cited the ongoing collaboration between the U.S. Securities and Exchange Commission (SEC) and the crypto industry as a pivotal reason for this decision, allowing time for policymakers to consider clearer regulations regarding cryptocurrency products. With Alabama's withdrawal, a total of five out of the ten states involved in the litigation against Coinbase have dropped their lawsuits. This includes states like Vermont and South Carolina, which dismissed their cases earlier this year. Despite this positive regulatory shift, Coinbase's chief legal officer Paul Grewal emphasized that five states still pursue litigation, which he argues wastes taxpayer resources and restricts consumer choice for staking services.

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