Coinbase, a US-based cryptocurrency exchange, is experiencing a significant development. The Securities and Exchange Commission (SEC) has reportedly agreed to dismiss its lawsuit against Coinbase. This news was shared by Coinbase in a blog post on February 21. CEO Brian Armstrong also discussed it in an interview with CNBC.
Paul Grewal, Coinbase’s chief legal officer, stated that the SEC staff has agreed to dismiss the case, pending approval from the commissioners. He called this a correction of a major wrong.
The SEC’s decision comes after a settlement that does not impose any financial penalties on Coinbase. The next step is for the SEC commissioners to approve this agreement, which would remove a significant legal challenge for the company and the US crypto market.
Grewal emphasized that this dismissal would be a victory for the rule of law and a validation of Coinbase’s position. He believes it will benefit the entire cryptocurrency industry and the 52 million Americans who own digital assets.
The SEC had filed the lawsuit against Coinbase in 2023, claiming that the exchange was operating as an unregistered securities exchange and offering unregistered securities. Coinbase disputed these allegations and sought to have the case dismissed. Many in the industry criticized former SEC Chair Gary Gensler for his aggressive regulatory approach.
The SEC has also taken action against other exchanges, including Binance and Kraken. However, the regulatory landscape has shifted since Donald Trump’s election. The departure of Gensler and other commissioners has led to a more crypto-friendly environment. Acting chair Mark Uyeda has established a crypto task force and restructured the enforcement unit to better balance compliance with investor protection.
