Alabama's Securities Commission recently dropped its enforcement action against Coinbase regarding its staking program, signaling a potential easing of regulatory pressure on digital asset firms. Commissioner Amanda Senn emphasized that the decision was influenced by ongoing efforts in Congress to establish a regulatory framework for cryptocurrency, aiming to save resources while allowing policymakers to continue their work. In June 2023, Alabama joined other states to accuse Coinbase of violating securities laws, but has since reconsidered its approach as federal scrutiny on the crypto sector diminishes under a pro-crypto administration. Five states, including Alabama, have abandoned their actions against Coinbase as regulatory discussions advance. Senn clarified that although litigation was paused, Alabama remains vigilant about enforcing regulations to protect consumers. The decision to issue a less severe show-cause order instead of a cease-and-desist order facilitated discussions with Coinbase, while affirming the Commission’s commitment to market integrity and consumer protection.

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