The U.S. Securities and Exchange Commission (SEC) is close to ending its landmark case against Coinbase, indicating significant changes in the commission’s approach to crypto regulation.
Case History
In 2023, the SEC accused Coinbase of operating as an unregistered securities exchange and offering unregistered securities. The case was one of the commission’s largest crypto-related enforcement actions under former chair Gary Gensler.
Coinbase's Stand
Coinbase consistently refuted all allegations from the SEC, even filing a countersuit to demand regulatory clarity. Paul Grewal, Coinbase’s chief legal officer, stated, "There will be no settlement or compromise – a wrong will simply be made right."
SEC’s Shift in Approach
Dismissing the lawsuit against Coinbase signals a change in the SEC’s approach under President Joe Biden. It is the first major crypto enforcement action likely to be withdrawn since Mark Uyeda took over as interim chair.
The SEC's move to dismiss the lawsuit against Coinbase reflects a reassessment of its approach to regulating the crypto industry, potentially leading to clearer rules for crypto companies in the future.
