The ALABAMA securities commission, a financial regulator of the American State, abandoned its trial against Crypto Exchange Coinbase, which accused the company of violating the securities laws by providing customers to the customers.
The regulator cited the work in progress between the Securities and Exchange Commission of the United States and the cryptographic industry to develop clear regulations in cryptography as the main reason for the abolition of the dispute, according to the legal file of April 23 shared by the legal director of Coinbase, Paul Grewal.
The file said:
“The SEC has announced the training of a new working group to, among other things, provide advice for the promulgation of rules concerning the regulation of cryptocurrency products and services.”
“Because of the above, the Commission considers that it would be likely to allow political decision -makers to envisage regulatory constructions,” continued the file.
The ALABAMA securities committee filed its trial against Coinbase in June 2023, alongside the state regulators of California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin.
The abandoned trial of the Commission reflects the change in positive regulation to cryptocurrencies in the United States, because a reform at the federal level is part of regulatory policy at the level of the State.
In relation: Oregon targets Coinbase after the dry has abandoned its federal trial
American states drop the Coinbase trial but half still holds
Five of the 10 states that filed the dispute against Coinbase for its ignition services abandoned their prosecution.
On March 13, the Vermont financial regulation department became the first of 10 state regulators to abandon the trial against Coinbase.
The Caroline Southern Carolina securities watchdog was the next one to abandon the dispute in 2023 against Coinbase, rejecting the trial on March 28.
https://www.youtube.com/watch?v=csmfzihja0i
Grewal announced that the Kentucky financial institutions department had followed the example of the Vermont and Caroline du Sud on April 1 by also rejecting its Coinbase trial.
Despite the domino effect of states which cancel the disputes against the exchange of crypto, the chief legal director of Coinbase said that more work had to be carried out.
“Five holpouts always choose to waste the resources of taxpayers on prosecution, and four of them have forbidden to mark out with Coinbase, depriving consumers of the right to gain on their platform of choice,” wrote Grewal in a post of April 23 X.
Review: The U-turn of the dry on the crypto leaves key questions unanswered
