The U.S. Securities and Exchange Commission (SEC) has agreed to abandon its case against Coinbase, therefore ending a legal struggle started in June 2023. Court documents dated February 27 indicate that the SEC has willingly dismissed all allegations against Coinbase and its parent company, Coinbase Global, with prejudice, therefore ensuring the issue will not be revived.
Reaching a deal on February 21 to settle the conflict, Coinbase and the SEC decided on this choice. The action by the SEC fits a larger change in regulatory approach since the agency has also dismissed lawsuits against Consensys, Robinhood, Gemini, and other cryptocurrency companies lately.
According to an SEC official, the firing fits the Commission’s revised attitude regarding cryptocurrency control. The agency mostly depended on enforcement measures against cryptocurrency businesses under past leadership, but the new government is pushing for a more ordered and open legislative framework.
Acting chair of the SEC, Mark Uyeda underlined the need of a new strategy. “It’s time for the Commission to correct its stance and engage more freely in shaping crypto policies,” he said.
In keeping with this change, the SEC has established a specialized Crypto Task Force to provide industry clear rules. Under Commissioner Hester Peirce, the task force seeks to create fair and sensible rules by working cooperatively with crypto companies and supporters.
Originally suing Coinbase on claims the exchange had failed to register as a broker, national securities exchange, or clearing agent, the SEC The lawsuit also claimed that Coinbase enabled trade of unregistered securities—including Solana, Cardano, Polygon, and Filecoin.
Arguing that the SEC’s enforcement-based approach lacked clarity and impartiality, especially after the business was let to go public on Nasdaq in 2021, Coinbase had always refuted the case. Now that the case has been dropped, the crypto sector is keenly observing to see how the changing regulatory posture of the SEC will affect the direction of digital assets in the United States.
