SEC says proof-of-work mining does not constitute securities dealing  

South Carolina has become the latest US state to dismiss its lawsuit against crypto exchange Coinbase over its staking services, which had accused the crypto exchange of offering unregistered securities.The lawsuit was officially dismissed in a joint stipulation between the crypto exchange and the South Carolina Attorney General’s securities division on March 27.“South Carolina just joined Vermont to dismiss its unfounded staking lawsuit against Coinbase,” the firm’s chief legal officer, Paul Grewal, said in a March 27 X post.“This is not just a victory for us, but for American consumers and we hope it’s a sign of things to come in the few states left that restrict staking.”South Carolina Attorney General and Coinbase’s joint stipulation. Source: South Carolina Attorney GeneralSouth Carolina and Vermont were two of 10 US states that took legal action against Coinbase’s staking services on June 6, 2023 — the same day that the federal securities regulator filed its lawsuit against the crypto exchange.The Securities and Exchange Commission officially dismissed that lawsuit on Feb. 27, 2025.The other eight US states that filed enforcement action similar to South Carolina were Alabama, California, Illinois, Kentucky, Maryland, New Jersey, Washington and Wisconsin. Grewal said he hoped to see other states follow suit, and that South Carolina residents lost an estimated $2 million in staking rewards as a result of the lawsuit.“The 52 million Americans who own crypto deserve commonsense consumer protections and clear rules,” he said. “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 billMeanwhile, a state lawmaker has just introduced the “Strategic Digital Assets Reserve Act of South Carolina” on March 27, which could see the state treasurer allocate up to 10% of certain state funds to cryptocurrencies such as Bitcoin (BTC).Unlike most US state crypto reserve bills, North Carolina’s House Bill 4256, introduced by Rep. Jordan Pace, mentioned Bitcoin on several occasions for the Strategic Digital Assets Reserve that the bill seeks to establish.Source: Jordan PaceThe bill allows South Carolina’s treasurer, currently Curtis Loftis, to establish a Bitcoin reserve that exceeds no more than 1 million Bitcoin — a high ceiling that the US federal government is also looking to reach or exceed with its recently established Strategic Bitcoin Reserve.The treasurer would be able to add Bitcoin to South Carolina’s General Fund, the Budget Stabilization Reserve Fund any other investment fund that they manage.Related: Coinbase files FOIA to see how much the SEC’s ‘war on crypto’ costWhile no mention of stablecoins, non-fungible tokens, Ether (ETH) or any other crypto tokens was made, the House bill said the Strategic Digital Assets Reserve wouldn’t be limited to Bitcoin.According to Bitcoin Law, 42 Bitcoin reserve bills have been introduced at the state level in 19 states, and 36 of those 42 bills remain live.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 use cryptocurrency forfeited in government criminal cases.Magazine: Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana?

The European Union’s insurance authority has proposed a blanket rule that would mandate insurance firms to maintain capital equal to the value of their crypto holdings as part of a measure to mitigate risks for policyholders.The new proposal — made by the European Insurance and Occupational Pensions Authority in a Technical Advice report to the European Commission on March 27 — would set a far stricter standard than other asset classes, such as stocks and real estate, which don’t even need to be half-backed.“EIOPA considers a 100% haircut in the standard formula prudent and appropriate for these assets in view of their inherent risks and high volatility,” it said in a separate statement.Such a measure would fill a regulatory gap between the Capital Requirements Regulation and Markets in Crypto-Assets Regulation (MiCA), EIOPA said, noting that the European Union’s regulatory framework for insurers currently lacks specific provisions on crypto assets.Circle argued in January that a blanket 100% stress factor on crypto assets didn’t account for lower-risk stablecoins. Source: Circle EIOPA outlined four options for the European Commission to consider — one: make no changes; two: mandate an 80% “stress level” to crypto assets; and three: mandate a 100% stress level to crypto asset. The stress level percentages determine how much capital firms need to hold to stay solvent.The fourth option called on the European Commission to consider the risks of tokenized assets more broadly.EIOPA said option three would be the most appropriate option.“An 80% stress to the value of crypto-asset exposures does not appear sufficiently prudent,” whereas “a 100% stress is more appropriate and aligns with one of the approaches to the transitional treatment of crypto-assets under CRR,” EIOPA said.The 100% stress refers to the assumption that the crypto asset prices could fall by 100% and that diversification — spreading the risk across different assets — wouldn’t not reduce this stress. EIOPA pointed out that Bitcoin (BTC) and Ether (ETH) have fallen 82% and 91%, respectively, in the past.A 100% capital charge for crypto assets would reflect a far stricter approach compared to stocks, which range between 39% and 49%, and real estate, which incurs a 25% capital charge, according to solvency capital requirements laid out in the Commission Delegated Regulation 2015/35.EIOPA said a 100% capital charge for crypto asset-related (re)insurance undertakings shouldn’t be “overly burdensome” and that there would be no material costs for policyholders.“The capital requirements would fully capture the risk of crypto-asset with a positive impact on policyholder protection in case there are material exposures in the future.”Related: Tabit offers USD insurance policies backed by Bitcoin regulatory capitalEIOPA acknowledged that the share of crypto-asset (re)insurance undertakings accounts for just 655 million euros or 0.0068% of all undertakings in Europe — even referring to it as “immaterial.”“At the same time crypto assets are high risk investments which may result in total loss of value,” EIOPA said, explaining why it recommends option three.Luxembourg and Sweden could be hit hardest by the proposed ruleInsurers in Luxembourg and Sweden are likely to be the most affected, according to a Q4 2023 report cited by EIOPA, which found that these two countries accounted for 69% and 21% of all crypto asset-related exposures among (re)insurance undertakings.Ireland, Denmark and Liechtenstein also accounted for 3.4%, 1.4% and 1.2% of the undertakings. Most of these undertakings are structured within funds, such as exchange-traded funds, and held on behalf of unit-linked policyholders, EIOPA noted.Split of crypto-asset exposure proxy per European country in Q4 2023. Source: EIOPAEIOPA, however, acknowledged that a broader adoption of crypto assets in the future may require a more “differentiated approach.”Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why

The US Securities and Exchange Commission has officially closed its investigation into Crypto.com, with no action taken against the crypto exchange, according to the firm’s CEO, Kris Marszalek.It comes seven months after the SEC issued a Wells notice to the crypto platform in August, signaling its intention to take legal action against the firm.”They used every tool available to attempt to stifle us, restricting access to banking, auditors, investors, and beyond. It was a calculated attempt to put an end to the industry,” Marszalek said in a March 27 X post.The SEC’s investigation into https://t.co/pFc4Pz9nFR has been closed with no action being taken against https://t.co/pFc4Pz9nFR.— Kris | Crypto.com (@kris) March 27, 2025”The fact that we not only persevered but became stronger is a testament to our vision and the community supporting it. Onwards!”Crypto.com filed a lawsuit against the SEC in October, accusing the Gary Gensler-led commission of overstepping its authority and taking a “misguided” approach to crypto regulation.This is a developing story, and further information will be added as it becomes available.