South Carolina has officially dropped its lawsuit against Coinbase concerning staking services. This dismissal, as per a joint agreement with the Attorney General’s office, is seen as a positive development for crypto users and the company.

The lawsuit resulted in an estimated loss of 2 million USD in staking rewards for residents of South Carolina. Coinbase’s Chief Legal Officer, Paul Grewal, highlighted the need for consumer protections and praised South Carolina’s decision.

On the same day, South Carolina introduced the Strategic Digital Assets Reserve Act, permitting up to 10% of designated funds to be invested in Bitcoin and other digital assets. This initiative aims to establish a strategic crypto reserve.