South Carolina’s Crypto Comedy: Lawsuits, Bitcoin, and a Dash of Sarcasm! 😂

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In a twist of fate that could only be scripted by the absurdity of our times, South Carolina has joined the ranks of the enlightened, dismissing its lawsuit against the crypto exchange Coinbase. This lawsuit, which accused the exchange of peddling unregistered securities, has been cast aside like an old shoe on March 27, in a joint stipulation that could make even the most stoic observer chuckle.

“Ah, South Carolina has finally decided to join Vermont in this grand dismissal of an unfounded lawsuit against Coinbase,” quipped Paul Grewal, the firm’s chief legal officer, in a post on X that could only be described as a digital victory lap.

“This is not merely a victory for us, but for the American consumer! Let us hope this is a harbinger of change for the few states still clinging to their restrictive staking laws.”

Coinbase Staking Lawsuit Dismissal

It is worth noting that South Carolina and Vermont were among ten states that took legal action against Coinbase’s staking services on June 6, 2023 — a day that will live in infamy, as it coincided with the federal securities regulator’s own lawsuit against the exchange. Coincidence? Perhaps. A cosmic joke? Definitely.

Fast forward to February 27, 2025, when the Securities and Exchange Commission, in a rare moment of clarity, decided to dismiss its own lawsuit. Meanwhile, the other eight states — Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington, and Wisconsin — are still pondering their next moves, perhaps over a cup of coffee and a good laugh.

Grewal expressed hope that other states would follow South Carolina’s lead, noting that residents had lost an estimated $2 million in staking rewards due to the lawsuit. “The 52 million Americans who own crypto deserve commonsense consumer protections and clear rules,” he stated, as if reciting a mantra for the ages. “We applaud South Carolina for standing up for justice and hope the remaining states with bans on staking will take notice.”

South Carolina Introduces Bitcoin Reserve Bill

Meanwhile, in a plot twist that could only be described as a legislative miracle, a state lawmaker has introduced the “Strategic Digital Assets Reserve Act of South Carolina” on March 27. This bill could allow the state treasurer to allocate up to 10% of certain state funds to cryptocurrencies like Bitcoin (BTC). Yes, you heard that right — Bitcoin is getting a seat at the table!

Unlike most state crypto reserve bills, North Carolina’s House Bill 4256, introduced by Rep. Jordan Pace, has the audacity to mention Bitcoin multiple times. It seems the Strategic Digital Assets Reserve is not just a passing fancy but a serious endeavor. Who knew lawmakers could be so forward-thinking?

Bitcoin Reserve Bill

The bill allows South Carolina’s treasurer, currently Curtis Loftis, to establish a Bitcoin reserve that could exceed 1 million Bitcoin — a ceiling so high it might just touch the stars. The treasurer would have the power to add Bitcoin to South Carolina’s General Fund, the Budget Stabilization Reserve Fund, and any other investment fund they manage. Talk about a financial buffet!

While the bill makes no mention of stablecoins, non-fungible tokens, or Ether (ETH), it does suggest that the Strategic Digital Assets Reserve won’t be limited to Bitcoin. A wise move, indeed!

According to Bitcoin Law, 42 Bitcoin reserve bills have been introduced at the state level across 19 states, with 36 of those still alive and kicking. Earlier this month, US President Donald Trump signed an executive order to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile, both of which will initially utilize cryptocurrency forfeited in government criminal cases. Because why not add a little drama to the mix?

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2025-03-28 08:23