The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against crypto exchange Coinbase, reflecting a major shift in the agency's approach to cryptocurrency regulation in the U.S.
SEC's Withdrawal from Coinbase Case
The dismissal of the case against Coinbase was filed on February 27, ending the legal proceedings against the world's second-largest crypto exchange. In an official tweet, Coinbase expressed joy over the decision, calling for fair legislation for the entire industry.
SEC's Sudden Policy Shift
The SEC initially sued Coinbase in June 2023 for operating as an unregistered broker and listing tokens deemed securities. However, President Donald Trump's return to office in January 2025 brought new hope for changing SEC's stance. The newly appointed Acting SEC Chair, Mark T. Uyeda, emphasized a shift to a more transparent and structured regulatory approach. He established a Crypto Task Force, led by Hester Peirce, to reassess existing policies and develop clearer guidelines for digital assets.
Coinbase's Reaction to SEC Decision
Coinbase announced the case dismissal in its official post, advocating for fair legislation for the crypto industry. Coinbase's Chief Legal Officer, Paul Grewal, welcomed the new era for cryptocurrency and digital assets in the U.S. He referenced that the SEC previously approved Coinbase's public listing on Nasdaq in 2021, viewing the lawsuit as contradictory from the beginning.
The dismissal of the Coinbase lawsuit raises questions about the SEC's future approach to cryptocurrency. The Commission has already paused its case against Binance as it reevaluates its enforcement strategy, suggesting impending clearer guidelines and a more predictable environment for crypto companies.
