SEC Drops Lawsuit Against Coinbase

After 18 months of litigation, the U.S. Securities and Exchange Commission (SEC) has agreed to fully dismiss its lawsuit against Coinbase Global Inc. (NASDAQ: COIN) next week.

On Friday, Coinbase CEO Brian Armstrong confirmed that the SEC staff had agreed in principle to drop the case, which began in June 2023, with zero fines and no changes to Coinbase’s business operations.

“After years of litigation, millions of taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase,” Armstrong said.
“Once approved by the Commission (which we’re told to expect next week), this would be a full dismissal, with $0 in fines paid and zero changes to our business.”

Trump Administration Credited for Crypto Policy Shift

Armstrong credited the Trump administration for reversing the regulation-through-enforcement approach of former SEC Chair Gary Gensler and Senator Elizabeth Warren.

“I have to give credit here to the Trump administration,” Armstrong said.
“I feel confident we would have won this case in court, but it certainly helped accelerate the process and drive accountability.”

Looking ahead, Coinbase plans to work with the current SEC administration, led by Paul Atkins, Mark Uyeda, and Hester Peirce, as well as the D.O.G.E department, to develop clear crypto regulations.

Impact on the Crypto Market

The SEC’s decision to drop its lawsuit against Coinbase could have a wider impact on the cryptocurrency industry.

• The SEC has also paused its litigation against Binance for 60 days, with expectations of a similar dismissal.
• Ripple Labs and the XRP community are optimistic that the SEC will also drop its case against XRP, especially after a judge ruled that XRP is not a security when traded on exchanges.
• Kraken’s lawsuit, filed in 2023, could see a similar outcome.

Bitcoin and Altcoins Rally

Following the announcement, Bitcoin (BTC) surged over 2%, briefly trading above $99,000 on Friday during the mid-New York session. The altcoin market followed suit, pushing the total crypto market cap to $3.38 trillion.

With regulatory uncertainty easing, the crypto industry is poised for further institutional adoption and mainstream growth.