The Securities and Exchange Commission, or SEC, is dropping its lawsuit against the Coinbase crypto exchange, the commission has announced. Indeed, the regulator filed a joint stipulation with Coinbase Inc. and Coinbase Global Inc. to dismiss the ongoing civil enforcement action against the two entities.
“For the last several years, the Commission’s views on crypto have been largely expressed through enforcement actions without engaging the general public,” said Acting Chairman Mark T. Uyeda. “It’s time for the Commission to rectify its approach and develop crypto policy in a more transparent manner. The Crypto Task Force is designed to do just that.”
The SEC had formerly charged Coinbase with operating an unregistered securities exchange in 2023. Speaking to CNBC last week, the exchange’s CEO, Brian Armstrong, discussed the “huge day” for the platform and the entire US-based cryptocurrency industry. “I think it’s a really important signal that, [after] a small group of activists in this prior administration who tried to unlawfully attack this industry, we’re going to be able to turn the page on that and finally get some regulatory clarity in America,” Armstrong said.
Also on Thursday, the SEC decided to end its investigation into another prominent crypto exchange, Consensys. Now that the SEC is under new leadership that is more lenient to the crypto industry, the regulator has begun changing its tune on several high-profile crypto cases. Several experts expect this trend to continue, with Ripple Labs (XRP) and Kraken as potential next candidates.
Paul Grewal, Coinbase’s chief legal officer, said that the SEC’s decision today rights “a major wrong.” 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,” he said in a Coinbase blog post. “To ensure innovation continues in America and a rogue regulator cannot weaponize the lack of clarity again, it is critical that we pass legislation which provides the long-term certainty needed for the US to lead in this industry.”
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“We look forward to working with the SEC staff who stand ready to implement real change. In the meantime, Coinbase will never stop fighting for what’s right. Let’s keep building.”