PANews reported on April 1 that according to Decrypt, just days after South Carolina withdrew its pledge lawsuit against the crypto exchange Coinbase, Kentucky became the third state to take the same action in a few weeks after Vermont withdrew last month. The Kentucky Department of Financial Institutions submitted an agreement to jointly withdraw the lawsuit on Monday, effectively ending its legal action against Coinbase's pledge service. Previously, the service was accused of violating state securities laws. Coinbase Chief Legal Officer Paul Grewal later posted on the X platform: "Congress needs to pass a federal market structure law as soon as possible to end this state-by-state litigation approach.
Vermont withdrew from the case on March 14, citing the dismissal of the federal lawsuit and the potential for clearer national regulation. South Carolina followed suit a few days later, with Grewal noting that residents of the state lost about $2 million in staking rewards as a result of the ban.
