Coinbase has won a significant legal battle against the State of Alabama regarding its staking program. The state’s enforcement action against Coinbase has been dropped, leaving only five states pursuing the exchange for allegedly offering unregistered securities through its staking service. This victory comes after Coinbase achieved success in a Freedom of Information Act (FOIA) lawsuit against the US Securities and Exchange Commission (SEC). These documents shed light on the SEC’s investigation into Ethereum 2.0. Paul Grewal, Coinbase’s Chief Legal Officer, announced that they have reached a major milestone in their legal battle with the drop of the Alabama case. As of February 28th, 2025, five states remain pursuing Coinbase over its staking program, while most other states have taken a similar stance and banned staking outright. Grewal believes this action deprives consumers of the right to use their preferred platform for earning on their crypto holdings. This victory is a significant step forward for Coinbase as it navigates the regulatory landscape of the cryptocurrency market. The case dismissal allows the company to focus on expanding its services and engaging with the evolving legal framework for crypto staking, while also signaling a push for clarity from regulators regarding future rules.