Vermont Drops Coinbase Staking Services Probe as Feds Shift Crypto Stance

The Vermont Department of Financial Regulation rescinded its show cause order against Coinbase, effectively ending its investigation into whether the crypto exchange’s staking services violated the state’s securities law.

“As we have always said: staking services are not securities,” Paul Grewal, the chief legal officer for Coinbase, said on X. “Our work isn’t over. Congress must seize the bipartisan momentum we’re seeing across the House and Senate to pass comprehensive legislation that takes into account the novel features of digital assets, such as staking. And the other states with staking actions should take a page from Vermont’s playbook.”