A 2023 lawsuit filed by the US Securities and Exchange Commission (SEC) against cryptocurrency exchange Coinbase has been dismissed by the regulator.
Coinbase confirmed that – subject to Commissioner approval – the SEC has agreed in principle to dismiss the case it launched against the exchange after accusing Coinbase of circulating and offering what it deemed the digital assets on the platform as unregistered securities.
In April 2021, Coinbase went public through the approval of the SEC, but what happened in the two years since its public listing to the lawsuit was a change in leadership at the financial regulator.
Gary Gensler presided as Head of the SEC from April 2021 until January 2025 once incoming President Donald Trump assumed the oval office. Gensler was widely viewed as an aggressive opponent against crypto, suing not just Coinbase, but also Binance, Ripple Labs and more.
Coinbase described Gensler’s handlings of the US crypto sector as a “war against crypto” and “acted as if it was above the law, usurping the power of Congress as set forth in the constitution”.
Officials at the crypto exchange, most notably its CEO Brian Armstrong, criticised Gensler’s approach to crypto regulation. He, among a majority of US crypto stakeholders, often called for more clarity and transparency over guidelines to follow.
This led to a nearly two-year battle between the SEC and the crypto sector, as Coinbase revealed it had spent “millions in legal costs and fees, countless employee hours, and years of protracted litigation” in court against the regulator.
Now, with the SEC under new leadership in the form of acting Chair Mark Uyeda, a pro-crypto politician, the lawsuit is set to be dismissed, with Coinbase labelling the decision as “righting a major wrong”.
In a blog post, a Coinbase statement read: “This is a victory not just for Coinbase, but for our customers, the United States, and individual freedom.
“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. To ensure innovation continues in America and a rogue regulator cannot weaponise 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.
“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.”
