Coinbase says the SEC has agreed to dismiss the lawsuit against US-based Crypto Exchange. The SEC sued Coinbase in 2023, but with Gary Gensler's exit, regulators are looking at a better regulatory approach.
US-based Crypto Exchange Coinbase is set up for landmark development after the Securities and Exchange Commission reportedly agreed to dismiss its own lawsuit against the exchange.
Coinbase announced big news in a blog post on Friday, February 21st. Coinbase CEO Brian Armstrong also shared the development in an interview with CNBC's Squawk Box.
“SEC staff, in principle, agreed to dismiss an illegal enforcement lawsuit against Coinbase, subject to the approval of the Commissioner.
Coinbase CEO Brian Armstrong also shared the news via X.
Great news!
After years of lawsuits, millions of taxpayer dollars spent and irreparable harm committed in the country, we have reached an agreement with SEC staff to dismiss the lawsuit against Coinbase. . If it is approved by the committee (he says he will look forward to it next week)…pic.twitter.com/ilnobs7n6n
– Brian Armstrong (@brian_armstrong) February 21, 2025
Sec vs. Coinbase Ending
The regulator's decision to withdraw the lawsuit follows a settlement that does not involve financial penalties against Coinbase, according to the exchange. The next move is for SEC committee members to ratify the contract and end the major legal hurdles setting the US crypto market.
“Dismissals are a big victory for the rule of law and a clear proof of our position, but most of all, it is a victory for the entire industry and the 52 million Americans who own digital assets,” Grewal said. he added.
The SEC filed a lawsuit against Coinbase in 2023, denounced the exchange of operations on unregistered stock exchanges. The lawsuit also included allegations that it provided unregistered securities.
Coinbase has fought the charges and sought to be fired. Industry players criticized SEC Chair Gary Gensler amid regulations through enforcement approaches. The other exchange that enters the cross of the “illegal” institution is Kraken.
But the Securities Watchdog situation has been a crypto-friendly turn since Donald Trump's election and the withdrawal of Jensler and other commissioners.
In a quest to balance compliance with the need to protect investors, Acting Committee Chairman Mark Ueda formed the Crypto Task Force and renamed the Executive Unit.
