Alabama has withdrawn its legal challenge against Coinbase’s staking program, ending a multi-state effort targeting the exchange. The decision follows the SEC’s announcement of a new task force focused on cryptocurrency regulation. This regulatory shift aligns with evolving federal attitudes toward cryptocurrency staking. While four other states continue pursuing enforcement actions, this case marks a significant step towards clearer regulatory clarity for exchanges and investors. 40 Coinbase’s Chief Legal Officer Paul Grewal hailed the victory as bolstering market confidence but stressed the need for further regulatory guidance. The development signifies reduced legal uncertainty surrounding staking participation, while preliminary data reflects optimistic investor sentiment in anticipation of broader national regulatory developments.