Kentucky has dismissed its lawsuit against Coinbase over staking services, marking the state as the third to do so in recent weeks, following South Carolina and Vermont. The dismissal arises after Kentucky passed pro-crypto legislation that supports self-custody of cryptocurrencies, defining mining, staking, and running blockchain nodes as non-securities. Coinbase's Chief Legal Officer, Paul Grewal, emphasized the need for a federal structure to address regulatory issues, celebrating the state decisions as victories for consumers and innovation. The lawsuit dismissal was part of a broader trend of state regulators withdrawing charges against Coinbase, alleging that the exchange's staking program violated securities laws. As of now, seven states still have pending enforcement actions against the company. The pro-crypto bill, HB701, aims to protect the rights of digital asset holders, and both House and Senate passed it unanimously, showcasing bipartisan support for crypto rights.

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