Why Alabama’s Securities Commissioner Dropped Its Case Against Coinbase
Alabama’s Securities Commission has dropped its enforcement action against Coinbase regarding its staking program, reflecting a shift in regulatory stance towards digital assets amid a pro-crypto environment under President Trump. Commissioner Amanda Senn emphasized the commitment to market stability and integrity, stating that enforcement actions may still occur if necessary. Alabama was part of a coalition of ten states that previously pursued legal action against Coinbase for alleged securities law violations. Recently, five states have rescinded their actions, while five others continue litigation. The decision to drop the enforcement action aims to allow time for policymakers to establish a regulatory framework for cryptocurrency, potentially saving resources. Senn noted that Alabama's approach was less aggressive than other states, focusing on discussions rather than immediate cessation of operations. The agency remains vigilant against fraud and consumer harm, referencing past incidents like the Mt. Gox collapse.
