The U.S. Securities and Exchange Commission (SEC) intends to withdraw its lawsuit against Coinbase. This announcement follows a resolution reached between the company and the regulator.
Background of the SEC Lawsuit Against Coinbase
The lawsuit filed in 2023 accused Coinbase of violating securities laws by offering investments that should have been registered under SEC rules. The SEC alleged that the exchange illegally operated as an exchange, broker, and clearing agency without proper registration.
Reaction from Coinbase Executives
Coinbase CEO Brian Armstrong shared on X that an agreement has been reached to dismiss the case. If finalized, Coinbase will not face fines or operational changes. Armstrong called this a major victory and a testament to the company's correctness. He credited crypto-friendly U.S. voters for supporting candidates such as President Trump, who pledged to reverse stringent regulations.
Broader Context and Impact on Crypto Market
The lawsuit was part of a broader crackdown on crypto firms led by former SEC Chair Gary Gensler, who resigned in January. Coinbase and similar companies faced pressure from lawsuits and accusations of securities law violations. Armstrong criticized Gensler's aggressive actions, stating they hindered industry growth.
Coinbase and its top executives have voiced support for clearer and fairer regulatory standards, collaborating with Congress and SEC staff to establish an effective regulatory framework for the U.S. crypto industry.
