Vermont has withdrawn its legal action against Coinbase regarding the alleged offering of unregistered securities through its staking service. The state's Department of Financial Regulation announced the decision on March 13, aligning with the recent actions taken by the U.S. Securities and Exchange Commission (SEC), which is forming a new task force to provide regulatory guidance on cryptocurrency products and services. Originally, Vermont was one of ten states that sued Coinbase in 2023, claiming the exchange was violating securities laws. The Vermont regulator concluded that the dismissal of the Federal Action and the expected new federal regulatory guidance made it more efficient to rescind the Show Cause Order without prejudice. Coinbase’s chief legal officer praised Vermont’s decision, emphasizing that staking services do not qualify as securities. He encouraged other states to follow suit and highlighted the need for comprehensive congressional legislation addressing the unique aspects of digital assets, including staking.

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