The U.S. Securities and Exchange Commission (SEC) is preparing to drop its lawsuit against Coinbase, symbolizing major shifts in the agency's approach to crypto regulation.
SEC to Dismiss Coinbase Suit
According to reports, the case, started in 2023, claimed Coinbase was running an exchange without proper registration and offering unapproved investments. The firm pushed back against the litigation for nearly two years, arguing that the agency did not provide clear rules for digital asset firms in the country. In one court proceeding, a U.S. court criticized the regulatory agency’s approach to crypto regulation.
A Shift in Crypto Regulation
The move to drop the suit shows a change in the agency’s perspectives under President Joe Biden. In the Biden and Harris-led government, former SEC Chair Gary Gensler took an aggressive position on crypto enforcement. However, with acting Chairman Uyeda heading the security body, the focus appears to be different. The agency has also decided to pause its legal battle with Binance.
What This Means for Crypto’s Future
For the crypto industry, this might be seen as a big win, as companies could feel more confident about running their businesses without constant legal troubles. However, there are still questions about what the SEC plans to do in the long term. Even though this looks like a step back, industry participants still wait to see if the SEC will set clearer rules.
The developments with Coinbase may lead to positive changes in crypto regulation, but experts and market participants still await to see the direction of SEC reforms.
