SEC Agrees to Dismiss Lawsuit Against Coinbase
- Coinbase announced that the SEC has agreed to dismiss its lawsuit against the US-based crypto exchange.
- The SEC initially sued Coinbase in 2023, but with the exit of Gary Gensler, the regulator is looking for a better regulatory approach.
In a significant development for US-based crypto exchange Coinbase, the Securities and Exchange Commission has reportedly agreed to dismiss its own lawsuit against the exchange.
The news was announced by Coinbase in a blog post on Friday, Feb. 21. Coinbase CEO Brian Armstrong also discussed the news in an interview with CNBC’s Squawk Box.
“SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval – righting a major wrong,” shared Coinbase chief legal officer Paul Grewal.
According to Coinbase CEO Brian Armstrong, the agreement with the SEC staff is a positive development.
Great news!
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. Once approved by the Commission (which we’re told to expect next week)… pic.twitter.com/IlnoBs7N6n
— Brian Armstrong (@brian_armstrong) February 21, 2025
SEC vs. Coinbase Resolution
Following a settlement that does not involve any financial penalty against Coinbase, the SEC has decided to withdraw the case against the exchange. The next step is for the SEC commissioners to approve the agreement, marking the end of a significant legal hurdle for the US crypto market.
“While dismissal will be a major win for the rule of law – and a clear vindication of our position – most of all it will be a win for the entire industry and the 52 million Americans who have owned a digital asset,” Grewal emphasized.
The SEC had filed a lawsuit against Coinbase in 2023, alleging that the exchange operated an unregistered securities exchange and offered unregistered securities. Coinbase refuted the allegations and sought a dismissal, with industry players criticizing former SEC Chair Gary Gensler for regulatory overreach.
Since the departure of Gensler and other Commissioners, the SEC has taken a more crypto-friendly approach, with Acting chair Mark Uyeda forming a crypto task force and restructuring an enforcement unit to balance compliance and investor protection.
