In what could be a major development for the cryptocurrency sector, Alabama has officially opted to drop its enforcement action case against Coinbase. The cryptocurrency exchanges’ chief legal officer, Paul Grewal, took to X (formerly Twitter) to announce the update to the ongoing litigation.
According to Grewal, that now brings down the list of ongoing staking lawsuits against Coinbase from US states to just five. Indeed, he notes that the exchange is now “halfway there” after the Alabama decision. Moreover, he confirmed that the five dropped lawsuits have all taken place in the last two months.
We're halfway there: Alabama just dropped its enforcement action against @coinbase – cutting the number of states with misguided staking suits in half in just two months. 1/3 pic.twitter.com/MWVnl30BTl
— paulgrewal.eth (@iampaulgrewal) April 23, 2025
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Alabama Becomes Fifth State to Drop Coinbase Staking Lawsuit
There is no denying that 2025 has been the start of a new era for the cryptocurrency market in the United States. With the return of US President Donald Trump, the country has embraced the industry for the very first time. Indeed, that has extended across the nation, with states looking into ways to embrace the asset class.
Moreover, it has also impacted the rampant anti-crypto litigation that was present over the last two years. Those cases are slowly declining in a development that continues today. Indeed, Alabama has dropped its enforcement action against cryptocurrency exchange Coinbase.
Also Read: Coinbase Officially Becomes Ethereum’s Largest Node Operator
The state was one of ten that filed enforcement actions against Coinbase in 2023. Specifically, it joined California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin. However, five of those states have dropped the lawsuit, including Alabama.
“Five holdouts are still electing to waste taxpayer resources on lawsuits,” Grewal said. Moreover, he called for clear regulations to be passed at the federal level. “It’s time for these outliers to follow suit and for Congress to get a framework passed so everyone can move forward.”
