Fourth State to Retreat From Legal Action
Illinois will withdraw its lawsuit against Coinbase over the exchange’s staking services, according to a spokesperson for Secretary of State Alexi Giannoulias. The move makes Illinois the fourth state to drop legal action, joining Vermont, South Carolina, and Kentucky.
No specific date for the dismissal has been confirmed.
Broader Trend Follows SEC Shift
The state-level lawsuits stemmed from a broader enforcement wave that began with the SEC’s June 2023 complaint against Coinbase. However, the SEC dropped its federal lawsuit in February 2025, prompting states to reconsider their cases.
All ten state lawsuits echoed the SEC’s claim that staking constituted an unregistered securities offering.
Strategic Shift as Illinois Pursues Bitcoin Reserve
The news coincides with Illinois advancing a Bitcoin strategic reserve bill that would authorize the state to hold BTC as a financial asset. If passed, it would signal a major policy shift toward embracing crypto rather than regulating it through enforcement.
Six other states, including California, Maryland, and New Jersey, have yet to withdraw their lawsuits.
