Coinbase scores major win as SEC set to drop lawsuit
Coinbase says the SEC has agreed to dismiss its lawsuit in opposition to the US-based crypto alternate.
The SEC sued Coinbase in 2023 however with Gary Gensler’s exit, the regulator is eyeing higher regulatory strategy.
US-based crypto alternate Coinbase is set for a landmark improvement after the Securities and Exchange Commission reportedly agreed to dismiss its personal lawsuit in opposition to the alternate.
Coinbase introduced the massive information in a weblog submit on Friday, Feb. 21. Coinbase CEO Brian Armstrong additionally shared the event in an interview with CNBC’s Squawk Box.
“SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval – righting a major wrong,” Coinbase chief authorized officer Paul Grewal wrote.
Coinbase CEO Brian Armstrong additionally shared the information by way of X.
Great information!
After years of litigation, thousands and thousands of your taxpayer {dollars} spent, and irreparable hurt finished to the nation, we reached an settlement with SEC employees to dismiss their litigation in opposition to Coinbase. Once authorized by the Commission (which we’re instructed to count on subsequent week)… pic.twitter.com/IlnoBs7N6n
— Brian Armstrong (@brian_armstrong) February 21, 2025
SEC vs. Coinbase ending
According to the alternate, the regulator’s determination to withdraw the case follows a settlement that doesn’t contain any monetary penalty in opposition to Coinbase. The subsequent transfer is for the SEC commissioners to ratify the settlement and finish a major authorized hurdle that set the US crypto market again.
“While dismissal will be a major win for the rule of law – and a clear vindication of our position – most of all it will be a win for the entire industry and the 52 million Americans who have owned a digital asset,” Grewal added.
The SEC filed its lawsuit in opposition to Coinbase in 2023, accusing the alternate of working an unregistered securities alternate. The lawsuit additionally included allegations of providing unregistered securities.
Coinbase contested the fees and sought a dismissal, with trade gamers criticizing then SEC Chair Gary Gensler of overreach amid regulation by enforcement strategy.Notably, the SEC had additionally sued Binance, the world’s largest crypto alternate by buying and selling quantity. Other exchanges to come into the “rogue” company’s cross-hairs is Kraken.
However, issues on the securities watchdog have taken a crypto-friendly flip since Donald Trump’s election and the exit of Gensler and different Commissioners.
Acting chair Mark Uyeda has fashioned a crypto process drive and renamed an enforcement unit amid the search to stability compliance and the necessity to shield traders.
