Illinois to Drop Staking Lawsuit Against Coinbase

Illinois will soon drop its staking lawsuit against Coinbase, joining three other U.S. states that have recently backed down from litigation against the exchange.

A spokesperson for Illinois Secretary of State Alexi Giannoulias told CoinDesk on Thursday that the office “intends to drop the Coinbase lawsuit.” The spokesperson did not reply when asked when the case may be dropped.

Illinois was one of 10 U.S. states that brought charges against Coinbase in 2023 for allegedly violating state securities laws through its staking program. The U.S. Securities and Exchange Commission (SEC) also charged Coinbase with violating federal securities laws for its staking product, but dropped that suit in February. Since the SEC’s retreat, state securities regulators in Kentucky, Vermont and South Carolina have also abandoned their own cases against the exchange.

The remaining states with staking-related suits against Coinbase include Alabama, California, Maryland, New Jersey, Washington and Wisconsin. Spokespeople for California, Maryland, and Wisconsin declined to comment on pending litigation.

A representative for the New Jersey Bureau of Securities told CoinDesk the “Coinbase matter remains open,” and Bill Beatty, securities administrator for the Washington Department of Financial Institutions said the state’s “case with Coinbase remains ongoing at this time.”

The Alabama Securities Commission did not return CoinDesk’s request for comment.