CEX listings outperform Nasdaq and Dow IPOs with 80% average returns
Cryptocurrency listings have outperformed the average of traditional stock listings, despite recent community criticism regarding the manipulation potential of token listings on centralized exchanges.Token listing procedures on centralized cryptocurrency exchanges (CEXs) drew significant controversy after Changpeng “CZ” Zhao, co-founder and former CEO of Binance, called the process flawed after disappointing performances of some token listings.Despite the criticism, crypto exchanges have outperformed traditional stock exchanges in terms of listings with positive returns on investment (ROI) and average ROI, according to an April 3 CoinMarketCap report shared exclusively with Cointelegraph.Over the past 180 days, crypto exchange listings had an average return of over 80%, outperforming the largest traditional stock indexes such as the Nasdaq and Dow Jones, as well as Bitcoin (BTC) and Ether (ETH).CEX listings, top indexes, average ROI. Source: CoinMarketCapThe 80% return refers to the average performance of all listed tokens by the seven major exchanges, including Binance, Bybit, Coinbase, OKX, Bitget, Gate and KuCoin.Moreover, 68% of crypto exchange listings boasted a positive ROI, outperforming the New York Stock Exchange’s (NYSE) 54% and the Nasdaq’s 51%.Source: CoinMarketCap“This data suggests that crypto exchanges have made progress in refining their listing,” the report said.Related: 70% chance of crypto bottoming before June amid trade fears: NansenCryptocurrencies listed on CEXs generally see high demand from investors as the exchanges provide significant new liquidity that can boost the coins’ price performances after listing.Token-listing criteria on CEXs started garnering attention in November 2024, after Tron founder Justin Sun claimed that Coinbase allegedly asked for $330 million in total fees to list Tron (TRX), a surprising allegation since Coinbase claims to charge no fees for listing new cryptocurrencies.Related: Trump-linked crypto ventures may complicate US stablecoin policyToken listing performance still depends on broader market conditions: BinanceRecent investor disappointment with some token listings may stem from historic profit expectations due to the significant upside of numerous CEX-listed tokens.Still, the returns of a cryptocurrency after listing depend on the wider market appetite, a Binance spokesperson told Cointelegraph, adding:“Outcomes can vary depending on broader market conditions. As the industry matures, we’re seeing reduced volatility compared to earlier cycles — a shift that reflects greater stability and long-term sustainability in the crypto market.”“Crypto investors’ expectations for new listings to perform well are understandable and often shaped by the historic success” of CEX listings, added the spokesperson.Binance, the world’s largest crypto exchange, listed 77 cryptocurrencies throughout 2023 and 2024, with a 0% delisting rate.Binance announced a community voting mechanism for token listings on March 9, to make the listing process more decentralized.Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge
US sanctions 8 crypto wallets tied to Garantex exchange and Yemeni Houthis
The US Treasury Department sanctioned eight cryptocurrency wallet addresses linked to Russian crypto exchange Garantex and the Yemeni political and military organization the Houthis.The United States Office of Foreign Assets Control (OFAC) sanctioned eight crypto addresses that data from blockchain forensic firms Chainalysis and TRM Labs had linked to the organizations. Two are deposit addresses at major crypto platforms, while the other six are privately controlled.Visualization of transaction flow related to OFAC sanctions. Source: ChainalysisThe addresses in question reportedly moved nearly $1 billion worth of funds linked to sanctioned entities. Most of the transactions funded Houthi operations in Yemen and the Red Sea region.Slava Demchuk, a crypto-focused money laundering specialist and United Nations Office on Drugs and Crime consultant told Cointelegraph that “the inclusion of Houthi-linked wallets reflects a broader recognition of crypto’s role in geopolitical conflicts and terrorism financing.” He added:“The implications are far-reaching — compliance frameworks must adapt swiftly, attribution efforts will intensify, and decentralized platforms may face increased scrutiny.“Demchuk highlighted that the situation reshapes the regulatory landscape. According to him, crypto “is now firmly within the scope of international security.Who are the Houthis?The Houthis, also known as Ansar Allah, are a Yemeni political and armed movement that emerged from the Zaidi Shia community. Originating as a revivalist and reformist group, they later became a major force in Yemen’s ongoing conflict.Related: US DOJ says it seized Hamas crypto meant to finance terrorismIn recent years, the Houthis have engaged in attacks against both military and civilian vessels in the Red Sea with missiles and drones. In January, US President Donald Trump designated the group as a foreign terrorist organization.The announcement noted that “the Houthis’ activities threaten the security of American civilians and personnel in the Middle East, the safety of our closest regional partners, and the stability of global maritime trade.” The group was recently struck by a US bombing campaign.Related: Binance claims’ no special relationship’ with Hamas, argues to dismiss lawsuitGarantex: Russia’s crypto laundromatGarantex is a Russian crypto exchange that was sanctioned and shut down in early March after purportedly helping money-laundering efforts. At the time, Tether — the leading stablecoin operator and issuer of USDt — froze $27 million in USDt on the platform, forcing it to halt operations.The platform has reportedly shifted millions of dollars as it sought to reboot under its new brand, “Grinex.” In mid-March, officials with India’s Central Bureau of Investigation announced the arrest of Lithuanian national Aleksej Bešciokov, who was alleged to have operated the cryptocurrency exchange Garantex. The arrest of the alleged Garantex founder was based on US charges of conspiracy to commit money laundering, conspiracy to operate an unlicensed money-transmitting business and conspiracy to violate the International Emergency Economic Powers Act.Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Crypto donations top $1B in 2024, gain traction after Myanmar, Thailand quake
Binance co-founder Changpeng “CZ” Zhao donated over half a million dollars worth of crypto to the earthquake disaster relief effort in Thailand and Myanmar, in another testament to the growing utility of blockchain-based emergency charity efforts.Zhao donated 1,000 BNB (BNB) tokens worth almost $600,000 to the disaster relief funds for the region on March 3, blockchain data shows.Zhao donates 1,000 BNB. Source: BscScan“Sent 1000 BNB for the donation for Myanmar and Thailand,” wrote Zhao in an April 3 X post.The crypto donation comes after Thailand and Myanmar were hit by a 7.7 magnitude earthquake on March 28, causing severe damage to buildings and widespread flooding.Related: 70% chance of crypto bottoming before June amid trade fears: NansenAt least 2,719 people have been confirmed dead in Myanmar and 18 in Thailand, with 76 people still unaccounted for, according to the latest figures shared by Reuters.The $600,000 donation comes nearly a week after Zhao pledged to donate 500 BNB for the relief efforts, an initial commitment that he doubled. Cryptocurrency-based donations have emerged as a significant lifeline for the region, due to banking restrictions caused by damaged infrastructure.Source: The Giving BlockCrypto donations exceeded $1 billion in 2024, spurred by increasing digital asset valuations and growing crypto regulatory clarity. About 16% of the donations went toward education, while 14% went toward medicine and health-related efforts.The Giving Block has launched a crypto-based emergency relief effort for Myanmar and Thailand to raise $500,000 for the devastated region.Source: TheGivingBlockThe organization expects crypto donations to reach $2.5 billion in 2025 on growing crypto wealth generation and increasing adoption due to a more favorable political landscape.Related: Trump-linked crypto ventures may complicate US stablecoin policyCrypto donations gain traction for emergency relief effortsZhao’s donation is a testament to the growing role of cryptocurrency in humanitarian aid, according to Anndy Lian, author and intergovernmental blockchain expert.“Crypto donations, compared to traditional fiat contributions, offer unique advantages, especially in emergencies,” Lian told Cointelegraph, adding:“Speed is a key factor—transactions on blockchain networks can settle in minutes, bypassing the delays of banks or intermediaries, which is critical when time saves lives.”“In disaster-stricken areas like Myanmar or Thailand, where infrastructure might be compromised, crypto can reach recipients directly via digital wallets, no SWIFT codes or wire transfers required,” Lian explained.Source: Anndy LianLian also donated 44 BNB tokens to the relief efforts in Myanmar and Thailand, a move that was publicly praised by Zhao.Ethereum co-founder Vitalik Buterin has been known for his crypto donations. In October, Buterin donated over $180,000 in Ether (ETH) to the biotech charity Kanro.Magazine: GUN token’s $69M milestone, Pudgy Penguins go to LOL Land: Web3 Gamer
Bitcoin price risks drop to $71K as Trump tariffs hurt US business outlook
Bitcoin (BTC) faces “very high risk” conditions from US trade tariffs, which could spark a slump to $71,000.In his latest analysis, Charles Edwards, the founder of quantitative Bitcoin and digital asset fund Capriole Investments, warned about the impact of “higher than expected” US trade tariffs.”Higher than expected” US tariffs pressure BitcoinBitcoin reacted noticeably worse than US stocks after President Donald Trump announced worldwide reciprocal trade tariffs on April 2.BTC/USD fell up to 8.5% on the day, while the S&P 500 managed to end the Wall Street trading session 0.7% higher.Edwards said that US business expectations are reflecting the type of uncertainty seen only three times since the turn of the millennium.“Consider this as tariffs come in higher than expected. The Philly Fed Business Outlook survey is showing expectations today comparable to 2000, 2008 and 2022,” he told X followers.An accompanying chart showed the Philadelphia Fed’s Business Outlook Survey (BOS) back under 15 for the first time since the start of 2024. Late 2022 was the pit of the most recent crypto bear market when BTC/USD reversed at $15,600.Philadelphia Fed Business Outlook Survey vs. S&P 500. Source: Charles Edwards/XIn Capriole’s latest market update on March 31, Edwards acknowledged that BOS data can produce unreliable signals regarding market sentiment but argued that it should not be ignored.“While no guarantee of the future outlook (this metric does have false signals) this is a data reading we have had before at very high risk zones (year 2000, 2008 and 2022), telling us to keep a very open mind,” he wrote, adding: “Especially if the tariff war escalates significantly beyond current expectations or corporate margins start to fall.”For Bitcoin, a key level to watch in the tariff aftermath is $91,000, with Capriole suggesting that US macroeconomic moves would “decide the ultimate technical trend from here.”“All else equal, a daily close above $91K would be a strong bullish reclaim signal,” the update explained alongside the weekly BTC/USD chart. “Failing that, a dip into the $71K zone would likely see a sizable bounce.”BTC/USD 1-day chart (screenshot). Source: Capriole InvestmentsBTC price focus on US liquidity trendAs Cointelegraph reported, a silver lining for crypto and risk assets could come in the form of increasing global liquidity.Related: Bitcoin sales at $109K all-time high 'significantly below' cycle tops — GlassnodeIn the US, the Fed has already begun to loosen tight financial policy, with bets on a return to so-called quantitative easing (QE) varying.“How long until the Powell printer starts humming?” Edwards queried.M2 money supply, meanwhile, is due for an “influx,” something which has historically spawned major BTC price upside.“The BIG takeaway (the most important observation) is that a big M2 influx is coming. The exact date is less important,” analyst Colin Talks Crypto predicted in an X thread this week.A comparative chart hinted at a potential BTC price rebound by the start of May.US M2 money supply vs BTC/USD chart. Source: Colin Talks Crypto/XThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Alabama, Minnesota lawmakers join US states pushing for Bitcoin reserves
Lawmakers in the US states of Minnesota and Alabama filed companion bills to identical existing bills that if passed into law, would allow each state to buy Bitcoin.The Minnesota Bitcoin Act, or HF 2946, was introduced to the state’s House by Republican Representative Bernie Perryman on April 1, following an identical bill introduced on March 17 by GOP state Senator Jeremy Miller.Meanwhile, on the same day in Alabama, Republican state Senator Will Barfoot introduced Senate Bill 283, while a bi-partisan group of representatives led by Republican Mike Shaw filed the identical House Bill 482, which allows for the state to invest in crypto, but essentially limits it to Bitcoin (BTC).Twin Alabama bills don’t explicitly name BitcoinMinnesota’s Bitcoin Act would allow the state’s investment board to invest state assets in Bitcoin and other cryptocurrencies and permit state employees to add crypto to retirement accounts.It would also exempt crypto gains from state income taxes and give residents the option to pay state taxes and fees with Bitcoin.Source: Bitcoin LawsThe twin Alabama bills don’t explicitly identify Bitcoin, but would limit the state’s crypto investment into assets that have a minimum market value of $750 billion, a criterion that only Bitcoin currently meets.26 Bitcoin reserve bills now introduced in the USIntroducing identical bills is not uncommon in the US and is typically done to speed up the bicameral legislative process so laws can pass more quickly.Bills to create a Bitcoin reserve have been introduced in 26 US states, with Arizona currently the closest to passing a law to make one, according to data from the bill tracking website Bitcoin Laws.Arizona currently leads in the US state Bitcoin reserve race. Source: Bitcoin LawsPennsylvania was one of the first US states to introduce a Bitcoin reserve bill, in November 2024. However, the initiative was reportedly eventually rejected, with similar bills also killed in Montana, North Dakota, South Dakota and Wyoming.Related: North Carolina bills would add crypto to state’s retirement system Montana, North Dakota, Pennsylvania, South Dakota and Wyoming are the five states thathave rejected Bitcoin reserve initiatives. Source: Bitcoin LawsAccording to a March 3 report by Barron’s, “red states” like Montana have faced setbacks to the Bitcoin reserve initiatives amid political confrontations between the Democratic Party and the Republican Party.Additional reporting by Helen Partz.Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Treasure DAO announces huge pivot in hopes of extending runway to February
Decentralized video game ecosystem Treasure DAO is restructuring as “a matter of survival” to extend its financial runway to at least February 2026.Treasure DAO's chief contributor John Patten says in an April 2 video posted to X that he has resumed a leadership role and is taking a plan to the DAO to streamline operations, eliminate unnecessary costs, and center the organization around a few key projects.“I will introduce this after all of you provide your opinions at this time. I have my own thoughts, but we must make this decision as a community through long deliberation. The best ideas need to rise to the surface,” he said. The Next Chapter of Treasure ✨We're releasing an official statement on our pivotal transition, outlining the rationale behind leadership changes, financial restructuring, and our bold new strategic direction.Full details 👇 pic.twitter.com/BjWgZxc98l— Treasure (@Treasure_DAO) April 2, 2025As part of cost-cutting to reduce Treasure DAO's annual burn rate of $8.3 million, Patten says 15 contributors have either left or been laid off, and game publishing support and the treasure chain will be terminated. At the same time, he is proposing to withdraw an idle $785,000 from the market maker Flowdesk to increase the DAO’s treasury.Patten says that, with the current runway, “stablecoins will last until roughly December,” but if the DAO approves withdrawing the funds from Flowdesk, this could be extended to February 2026, in “an optimistic scenario.”The DAO's current treasury only has $2.4 million left, and the ecosystem fund holds 22.3 million MAGIC, valued at $2.3 million, according to Patten, but if “Magic falls,” the DAO is “unsustainable sometime between December and February.” Treasure DAO to refocus on four products Patten says the DAO also needs to focus its energy on a few key products and future partnerships will be based on revenue generation for the DAO, where users of the platform will need to generate value through token use.“The DAO should officially commit to a focused, streamlined approach of four products and four products only, the marketplace, Bridgeworld, Smolworld and AI agent, scaling technology,” he said. Related: Illuvium CEO says firm has gone ‘super lean’ to speed up development“That’s all that Treasure should be through 2025. Bridgeworld and Smolworld will be use cases to demonstrate how other projects utilize magic marketplace and our AI framework and back end to run many, many agents concurrently.”TreasureDAO, launched in 2021, offered services to provide game publishers access to infrastructure and advisory services to launch Web3-based games. However, Patten says it “didn't have a scalable business model” and hasn’t grown since the Arbitrum airdrop in March 2023. The Treasure ecosystem token MAGIC is down 16.5% to $0.0872 for the last 24 hours, according to CoinGecko. Overall, the token has shed 98% after hitting its all-time high of $6.32 on Feb. 19, 2022. Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Did ChatGPT come up with Trump’s tariff rate formula?
Update (April 3, 10:50 am UTC): This article has been updated to correct the quote attributed to Wojtek KopczukThere’s a crazy theory on social media that US President Donald Trump's newly announced reciprocal tariff plan — which hits all countries with a minimum 10% tariff — could have been designed by an artificial intelligence chatbot.Only a short period after Trump announced the tariffs at the White House Rose Garden on April 2, some X users claim they were able to duplicate the same tariff plan with a rudimentary prompt using OpenAI’s ChatGPT. “I was able to duplicate it in ChatGPT,” NFT collector DCinvestor told his 260,000 followers on X following the Donald Trump announcement of reciprocal tariffs on 185 countries on April 2. “It also told me that this idea hadn’t been formalized anywhere before, and that it was something it came up with,” he added, referring to the chatbot’s ability to calculate the tariff rates. “FFS. Trump admin is using ChatGPT to determine trade policy,” he added.Of course, the similarities between the artificial intelligence-generated tariff plan and Trump’s plan could also be simply coincidental.DCInvestor’s observation came in response to crypto trader Jordan Fish, also known as Cobie, who also asked ChatGPT using the prompt: “What would be an easy way to calculate the tariffs that should be imposed on other countries so that the US is on even playing fields when it comes to trade deficit. Set a minimum of 10%.” ChatGPT response to question on tariff calculations. Source: CobieJournal of Public Economics editor Wojtek Kopczuk also experimented with ChatGPT, which generated the same results. “Confirmed, chatgpt... exactly what the dumbest kid in the class would do, without edits,” he said. Author Krishnan Rohit postulated on X that this “might be the first large-scale application of AI technology to geopolitics.” ChatGPT, Gemini, Claude, and Grok all give the same answer to the question on how to impose tariffs easily, he observed. Trump's reciprocal tariffs lead to crypto dipFounder and CEO of supply chain logistics platform Flexport, Ryan Petersen, said his firm had reverse-engineered the formula the Trump administration used to generate the reciprocal tariffs. “It’s quite simple, they took the trade deficit the US has with each country and divided it by our imports from that country,”An editor at The Yale Review, James Surowiecki, said something similar, “they just took our [US] trade deficit with that country and divided it by the country’s exports to us.”Related: ‘National emergency’ as Trump’s tariffs dent crypto pricesTrump’s reciprocal tariffs, which come into effect on April 5, have hit all countries with a 10% levy, with some nations facing even larger rates, such as China with a 34% tariff, Japan with 24%, and the European Union with 20%. Crypto markets reacted particularly badly, plunging 5% after the announcement as Bitcoin (BTC) fell by $5,500 to $82,277 before recovering marginally, according to CoinGecko. Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Bitcoiner speculates ‘massive’ bot spam briefly took down Bitcoin mailing list
One of Bitcoin’s key communication tools used to discuss potential protocol changes was knocked out for several hours starting on April 2, with one moderator speculating it may have been a targeted attack assisted by bots. For several hours across April 2 and 3, Bitcoin core developers and researchers were unable to interact on Google Groups after Google banned the group for spam. “Bitcoin Development Mailing List has been identified as containing spam, malware, or other malicious content,” Google’s warning stated at the time.The Bitcoin Development Mailing List’s warning before the ban was lifted. Source: GoogleBitcoin Core developer Bryan Bishop told Cointelegraph that the ban may have been triggered by individuals or bots mass-reporting the Bitcoin mailing list from multiple accounts.It’s a common tactic by attackers looking to ban or censor a community, Bishop said, noting that similar incidents occur on YouTube, X and TikTok fairly often.“So it’s possible that this whole thing might have been triggered through something like that. It might have just been someone clicking those links on a massive scale to report it.”Google Workspace Support’s X account confirmed that the issue had been resolved on April 3 at 2:23 am UTC in response to one of the Bitcoin mailing list’s other moderators, Ruben Somsen.Bitcoin advocate and head of Block Inc, Jack Dorsey, also called attention to the ban, urging Google CEO Sundar Pichai to investigate the issue.Related: Bitcoin creator Satoshi Nakamoto may be wealthier than Bill GatesMailing lists typically involve one moderator email sending information to subscribers in a group to discuss and collaborate on a topic or shared interest.The Bitcoin mailing list is used by Bitcoin core developers and researchers to discuss potential protocol changes to Bitcoin, which secures more than $1.6 trillion worth of value for network users around the world.It has become one of the main Bitcoin mailing lists since the network’s pseudonymous creator, Satoshi Nakamoto, shared Bitcoin’s white paper on the Cryptography Mailing List on Oct. 31, 2008.Bitcoin mailing list moderators plan to stay on Google GroupsDespite the incident, Bishop said the Bitcoin mailing list moderators have no intention of moving away from communicating via email:“The reality of the situation is that this particular mailing list has always been email, and so the contributors that discuss Bitcoin protocol development through email, in order to provide continuity of service, you have to replace it with email.”The Bitcoin mailing list officially migrated to Google Groups in February 2024. Source: Bryan BishopBefore that, the mailing list was hosted on the Linux Foundation, Oregon State University Open Source Lab’s infrastructure and SourceForge.net.Bishop suggested that a Bitcoin forum shouldn't be limited to one particular platform, pointing out that there are several other platforms where Bitcoin developments are discussed, including GitHub and the decentralized social network Nostr.Magazine: 10 crypto theories that missed as badly as ‘Peter Todd is Satoshi’
North Korea tech workers found among staff at UK blockchain projects
Fraudulent tech workers with ties to North Korea are expanding their infiltration operations to blockchain firms outside the US after increased scrutiny from authorities, with some having worked their way into UK crypto projects, Google says.Google Threat Intelligence Group (GTIG) adviser Jamie Collier said in an April 2 report that while the US is still a key target, increased awareness and right-to-work verification challenges have forced North Korean IT workers to find roles at non-US companies.“In response to heightened awareness of the threat within the United States, they’ve established a global ecosystem of fraudulent personas to enhance operational agility,” Collier said. “Coupled with the discovery of facilitators in the UK, this suggests the rapid formation of a global infrastructure and support network that empowers their continued operations,” he added. Google's Threat Intelligence Group says North Korea's tech workers expanded their reach amid a US crackdown. Source: GoogleThe North Korea-linked workers are infiltrating projects spanning traditional web development and advanced blockchain applications, such as projects involving Solana and Anchor smart contract development, according to Collier. Another project building a blockchain job marketplace and an artificial intelligence web application leveraging blockchain technologies was also found to have North Korean workers. “These individuals pose as legitimate remote workers to infiltrate companies and generate revenue for the regime,” Collier said. “This places organizations that hire DPRK [Democratic People's Republic of Korea] IT workers at risk of espionage, data theft, and disruption.”North Korea looking to Europe for tech jobsAlong with the UK, Collier says the GTIG identified a notable focus on Europe, with one worker using at least 12 personas across Europe and others using resumes listing degrees from Belgrade University in Serbia and residences in Slovakia. Separate GTIG investigations found personas seeking employment in Germany and Portugal, login credentials for user accounts of European job websites, instructions for navigating European job sites, and a broker specializing in false passports.At the same time, since late October, the North Korean workers have increased the volume of extortion attempts and gone after larger organizations, which the GTIG speculates is the workers feeling pressure to maintain revenue streams amid a crackdown in the US. “In these incidents, recently fired IT workers threatened to release their former employers’ sensitive data or to provide it to a competitor. This data included proprietary data and source code for internal projects,” Collier said. Related: North Korean crypto attacks rising in sophistication, actors — ParadigmIn January, the US Justice Department indicted two North Korean nationals for their involvement in a fraudulent IT work scheme involving at least 64 US companies from April 2018 to August 2024.The US Treasury Department’s Office of Foreign Assets Control also sanctioned companies it accused of being fronts for North Korea that generated revenue via remote IT work schemes.Crypto founders have also been reporting an increase in activity from North Korean hackers, with at least three founders reporting on March 13 that they foiled attempts to steal sensitive data through fake Zoom calls.Having audio issues on your Zoom call? That's not a VC, it's North Korean hackers. Fortunately, this founder realized what was going on.The call starts with a few "VCs" on the call. They send messages in the chat saying they can't hear your audio, or suggesting there's an… pic.twitter.com/ZnW8Mtof4F— Nick Bax.eth (@bax1337) March 11, 2025In August, blockchain investigator ZachXBT claimed to have uncovered a sophisticated network of North Korean developers earning $500,000 a month working for “established” crypto projects.Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis
Kentucky joins Vermont and South Carolina in dropping Coinbase staking suit
Kentucky’s finance watchdog has dismissed its lawsuit against Coinbase over the exchange’s staking rewards program, following its peers in Vermont and South Carolina.Kentucky’s Department of Financial Institutions filed the stipulation to dismiss jointly with Coinbase on April 1, ending the state’s legal action against the exchange first filed along with 10 other state regulators in June 2023.Coinbase chief legal officer Paul Grewal posted to X on April 1, calling for Congress “to end this litigation-driven, state-by-state approach with a federal market structure law.”Source: Paul GrewalFinancial regulators from 10 states launched similar suits against Coinbase in June 2023, on the same day the Securities and Exchange Commission sued the exchange — a lawsuit the SEC dropped last month.Seven suits against Coinbase still activeAlabama, California, Illinois, Maryland, New Jersey, Washington and Wisconsin are the seven states that are still continuing with their lawsuits, which all allege Coinbase breached securities laws with its staking rewards program.Vermont was the first state to end its suit against Coinbase, with its Department of Financial Regulation filing an order to rescind the action on March 13, noting the SEC’s Feb. 27 decision to drop its action against the exchange and the likelihood of changes in the federal regulator’s guidance.The South Carolina Attorney General’s securities division followed Vermont days later, dismissing its lawsuit in a joint stipulation with Coinbase on March 27.Related: South Carolina dismisses its staking lawsuit against Coinbase, joining VermontKentucky’s decision to drop its case against Coinbase follows just days after the state’s governor, Andy Beshear, signed a “Bitcoin Rights” bill into law on March 24 that establishes protections for crypto self-custody and exempts crypto mining from money transmitting and securities laws.The axed state-level lawsuits come amid a stark policy change at the SEC, which has dropped or delayed multiple lawsuits against crypto companies that it filed under the Biden administration.The federal securities watchdog has also created a Crypto Task Force that is engaging with the industry on how it should approach cryptocurrencies.Magazine: SEC’s U-turn on crypto leaves key questions unanswered
