The US stock market took a dire turn downward Thursday after US President Trump instructed a 10% baseline tariff. Indeed, the ‘Liberation Day’ import taxes have only enhanced the uncertainty surrounding the market. Moreover, it could be set to feed into Jim Cramer’s stance on Alphabet (GOOGL), as he previously shared his concern with the stock.

Cramer is quite the divisive figure in stock circles, but his perspective does still garner attention. The Google parent company has been one of the biggest tech firms for the last several years and could be set to surge if the market turns around. However, should traders share in Cramer’s worries over the Magnificent Seven stock?

Also Read: Alphabet (GOOGL) Makes Big Move in $330B Market: Now the Time to Buy?

Jim Cramer Shares Concern Over Alphabet (GOOGL) as Market Nosedives

The US stock market took a turn after US President Donald Trump introduced new tariffs this week. Although the move was expected, the unveiling of a secretive plan introduced newfound panic into investors. Moreover, a sell-off saw the Dow plummet 1,400 points, with the S&P 500 dropping more than 4%.

That reality has driven even more worry directed at stocks that severely underperformed this year. One stock that has gotten negative attention from CNBC host Jim Cramer is Alphabet (GOOGL), which he has expressed ‘concern’ over amid the ongoing tariff drama.

Also Read: Google’s Alphabet Stock Price Prediction for April 2025

“You know, I got to tell you, the more I look at it, the more I am concerned that they bought Wiz,” Cramer said. “And I’m concerned. Why am I concerned? Because I stopped going to Google. I can’t be alone. There are just other places to go to,” the analysts added.

There is an increasing number of concerns regarding Alphabets’ AI spending. Moreover, its falling market share may not justify its $75 billion in planned capital expenditure. The stock has fallen more than 3% after the arrival of increased Trump tariffs. Subsequently, shares have fallen more than 9% over the last 30 days.

Illinois is preparing to drop its lawsuit against Coinbase over the exchange’s staking program, following the lead of three other U.S. states that have recently abandoned similar legal actions.

A spokesperson for Illinois Secretary of State Alexi Giannoulias confirmed the decision on April 3, but did not specify when the case would be officially dismissed.

Illinois was one of ten states that sued Coinbase in 2023, alleging that the exchange had violated securities laws by offering staking services without proper registration.

The case was part of a broader crackdown led by a multistate task force, which included regulators from Alabama, California, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin.

Illinois Follows Other States in Dropping Coinbase Staking Case

The legal battle over staking stems from concerns that Coinbase’s program, which allows users to earn rewards by locking up their crypto, operates without regulatory oversight.

Regulators argued that Coinbase’s staking rewards program functioned as an unregistered securities offering, allowing the company to collect a share of staking profits before distributing the remainder to investors.

The U.S. Securities and Exchange Commission (SEC) also sued Coinbase over its staking product, arguing it constituted an unregistered securities offering. However, the SEC dropped its case in February.

Since then, Kentucky, Vermont, and South Carolina have all moved to dismiss their lawsuits against the exchange.

Despite these developments, not all states have backed down. A representative for the New Jersey Bureau of Securities confirmed that its case against Coinbase remains open, while Washington State’s securities administrator, Bill Beatty, said its case is still ongoing.

The original lawsuit against Coinbase raised concerns that staking rewards accounts were not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC), leaving investors unprotected from potential losses.

Regulators in Alabama had initially ordered Coinbase to justify why it should not be forced to stop offering its staking services.

Despite the legal challenges, Coinbase has maintained that its staking services do not constitute securities and has continued to oppose regulatory claims.

With Illinois now set to drop its case, the pressure on Coinbase’s staking program appears to be easing, though ongoing cases in states like Washington and New Jersey suggest the legal battle is not yet over.

Kentucky Drops Coinbase Staking Lawsuit, Signaling Shift in State-Level Crypto Policies

Kentuck’y Department of Financial Institutions filed the joint dismissal with Coinbase on April 1 to drop its lawsuit, ending the legal battle nearly a year after joining 10 other state regulators in accusing the exchange of violating securities laws.

Coinbase’s chief legal officer, Paul Grewal, acknowledged the decision and urged Congress to replace the current “state-by-state” legal battles with clear federal regulations.

Seven states, including Alabama, California,Maryland, New Jersey, Washington, and Wisconsin, are still pursuing cases against Coinbase.

Meanwhile, Illinois has shifted its focus to Bitcoin adoption. The state is advancing a Bitcoin strategic reserve bill (HB1844), which proposes creating a dedicated fund to hold Bitcoin as a financial asset for at least five years.

Representative John Cabello introduced the bill, which follows Arizona’s push to allow public funds and pensions to invest in Bitcoin.

As regulatory battles continue, Illinois’ pivot signals growing state-level interest in Bitcoin as a treasury asset.

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