An Ohio strip club law prohibits clients from touching a nude or semi-nude dancer, unless the patron is a member of the dancer's immediate family.
Hours after her arrest, the charges were dropped, according to the Associated Press.
Daniels has said she had sex with President Donald Trump in 2006, when he was married, which Trump has denied.
Photo provided by the Franklin County Sheriff's Office shows porn actress Stormy Daniels.
She is locked in a legal battle with Cohen and Trump to void the nondisclosure agreement formally barring her from speaking about the alleged affair. Daniels was busted and taken to police headquarters where she was charged with three misdemeanor counts of touching a patron at a "sexually-oriented business". He said he has been talking with "reasonable" prosecutors all morning and Daniels will leave the state of OH within the next several hours.
Prosecutors say the "touching" statute only applies to strippers who "regularly appear" at the establishment.
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And it seems that she was enlisted to curate the wardrobe for the royal couple's most recent appointments. Noted dog-lover Meghan, who wore a Roland Mouret dress, spent time with the President's mountain dogs.
According to the report, Daniels held the faces of a female and male officer between her breast when they approached the stage.
"Are you kidding me?" he asked.
Avenatti called the arrest a setup, politically motivated, and said it - quote "reeks of desperation". Columbus Police confirmed to the Columbus Dispatch the law is rarely enforced in the state of OH despite being on the books for the past 11 years. "There has to be higher priorities".
"I want to thank Joe Gibson & his colleagues at the prosecutors [office] for their professionalism starting with our first call early this am", Avenatti stated in a Twitter post sharing the news.
He also said that there was going to be a change of plans in Stormy's performance and that she was looking for a different venue to perform at in Columbus, although she hasn't confirmed that information herself yet.
A person who answered the phone at Sirens, the strip club where Daniels performed, declined to comment.