4-4-2025 – Illinois is poised to withdraw its legal challenge against Coinbase over the cryptocurrency exchange’s staking programme, aligning itself with a trio of other American states that have recently stepped back from similar courtroom battles. A spokesperson from the office of Illinois Secretary of State Alexi Giannoulias confirmed on Thursday that the state plans to shelve the lawsuit, though specifics on the timing remain unanswered.
This development marks a notable shift in a saga that began in 2023, when Illinois joined nine other U.S. states in accusing Coinbase of flouting local securities regulations through its staking offerings. The legal pressure wasn’t limited to state level—the U.S. Securities and Exchange Commission (SEC) had also targeted Coinbase with federal charges over the same product, only to abandon its case in February. That retreat appears to have set a precedent, with Kentucky, Vermont, and South Carolina following suit by dropping their own proceedings against the exchange.
Yet, the fight isn’t over for Coinbase. Six states—Alabama, California, Maryland, New Jersey, Washington, and Wisconsin—still have active lawsuits tied to the staking issue. In New Jersey, a spokesperson from the Bureau of Securities told CoinDesk that the matter “remains unresolved,” while Bill Beatty, securities administrator at Washington’s Department of Financial Institutions, affirmed that their case “continues to move forward.” Responses from California, Maryland, and Wisconsin were less forthcoming, with officials there opting to stay tight-lipped on ongoing litigation. Alabama’s Securities Commission, meanwhile, left CoinDesk’s inquiries unanswered.
