TechFlow news, according to Cointelegraph, the financial regulatory authority of Vermont, USA announced on March 13 the withdrawal of its previous "Order to Show Cause" against cryptocurrency exchange Coinbase, which had accused Coinbase of offering unregistered securities through its staking services.
In its statement, Vermont's regulator said that given the U.S. Securities and Exchange Commission (SEC) withdrew its related lawsuit against Coinbase on February 28, the state decided to follow the federal regulator's position and dismiss its legal action without prejudice. The regulatory department specifically noted: "The SEC has announced the formation of a new task force whose responsibilities include providing guidance on regulatory rules for cryptocurrency products and services. Considering the dismissal of the federal litigation and the potential emergence of new federal regulatory guidance, the department believes it is most efficient and in the interest of justice to withdraw the pending Order to Show Cause."
Coinbase Chief Legal Officer Paul Grewal responded: "As we've consistently stated, staking services are not securities. We appreciate Vermont for embracing progress and providing clarity for its citizens who own digital assets." He also urged other states still pursuing litigation over Coinbase's staking services to "follow Vermont's lead."
