KeyTakeaways:
- US SEC agrees to drop its lawsuit against Coinbase, pending Commissioner vote next week.
- Coinbase CEO Brian Armstrong reacts, calling the decision a victory for the exchange.
- Coinbase urges Congress to pass crypto regulations for long-term clarity and innovation.
The US Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against Coinbase, shifting the regulator’s stance towards the cryptocurrency industry. This decision is pending approval from the Commissioners, who are expected to vote next week.
Coinbase, one of the leading cryptocurrency exchanges, announced that the SEC has agreed in principle to drop its legal battle over allegations that the platform was offering unregistered securities. The decision is subject to final approval from the SEC Commissioners. This development has been described as correcting a significant error in the SEC’s previous approach.
Coinbase’s legal team expressed confidence in the exchange’s position, stating that it had always maintained its innocence and had been right. The legal officer, Paul Grewal, called this agreement a victory for the company, its customers, and the wider U.S. economy. He also emphasized that the SEC’s original lawsuit, filed in 2023 under former Chair Gary Gensler, should never have been initiated.
CEO Brian Armstrong’s Reaction
Coinbase CEO Brian Armstrong took to social media to comment on the agreement, emphasizing that the case would be fully dismissed once the Commissioners approve it. Armstrong noted that the SEC had not imposed any fines on Coinbase, nor would there be any changes to the company’s operations. He shared his belief that pursuing legal action was the right course despite initial concerns from critics who feared prolonged litigation and high legal costs.
In response to the ongoing regulatory uncertainty, Coinbase reiterated its call for Congress to pass legislation providing long-term regulatory clarity for the crypto industry. The exchange believes clearer rules will help foster innovation, lower consumer fees, and promote economic freedom in the United States.
