Catenaa, Sunday, March 02, 2025- The US Securities and Exchange Commission (SEC) has agreed in principle to dismiss its lawsuit against Coinbase, pending final approval from the agency’s commissioners, the crypto exchange announced Friday.
The SEC initially sued Coinbase in June 2023, alleging securities law violations related to its trading platform operations. The case accused the company of functioning as an unregistered broker, exchange and clearing agency. However, Coinbase has long maintained its compliance with the law and called the lawsuit an overreach by the regulator.
Paul Grewal, Coinbase’s chief legal officer, called the dismissal “a major win for the rule of law” and the digital asset industry. CEO Brian Armstrong said the SEC’s decision was “hugely vindicating,” crediting the change in the agency’s leadership following President Donald Trump’s inauguration in January.
Former SEC Chair Gary Gensler, known for his strict enforcement approach, departed the agency last month. Trump has since nominated Paul Atkins, a crypto-friendly former regulator, to lead the SEC, pending Senate confirmation. The agency has also established a crypto task force under Commissioner Hester Peirce to create clearer regulations.
Following the news, Coinbase stock rose 5% to $270 in pre-market trading Friday. The SEC declined to comment.
