Kentucky has dropped its lawsuit against Coinbase over its staking rewards program, joining Vermont and South Carolina in ending legal actions against the exchange. This move follows the SEC's decision to drop its lawsuit against Coinbase last month. However, seven states, including Alabama and California, continue their legal battles, alleging securities law breaches. Kentucky's decision comes shortly after Governor Andy Beshear signed a "Bitcoin Rights" bill, protecting crypto self-custody. The SEC's policy shift includes forming a Crypto Task Force to engage with the industry.