Kentucky's Department of Financial Institutions has dismissed its lawsuit against Coinbase regarding the exchange's staking rewards program, following similar actions by Vermont and South Carolina. This dismissal occurred on April 1, 2025, alongside a trend where multiple states are ending legal actions related to Coinbase and its staking operations. Originally, 10 states filed suits in June 2023, including a concurrent lawsuit from the SEC that was dropped in February 2025. The South Carolina Attorney General's office also dismissed its case shortly before Kentucky's action. Some states, such as Alabama, California, and Illinois, continue to pursue their lawsuits against Coinbase, alleging breaches of securities laws. Kentucky's decision follows the signing of a “Bitcoin Rights” bill by Governor Andy Beshear, which provides protections for crypto self-custody and exempts certain crypto activities from traditional regulations. The ongoing changes at the SEC, with adjustments in their approach to litigation against crypto companies, may also be influencing state decisions regarding involvement in such cases.

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