Coinbase announced on Friday that the U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against the company with prejudice, ensuring the case cannot be refiled. This decision, which still requires approval from the SEC’s Commissioners, reflects a potential shift toward a more crypto-friendly regulatory environment under the Trump administration compared to the previous leadership under Gary Gensler. The lawsuit, filed in 2023, accused Coinbase of operating as an unregistered national securities exchange, broker, and clearing agency by alleging that crypto assets were securities. Coinbase countered by arguing that the SEC had not established clear regulatory guidelines for crypto before pursuing legal action.
Coinbase CEO Brian Armstrong revealed in a video posted on X that the company spent $50 million on external legal fees to defend the case, despite early warnings about the high costs of litigation. Armstrong also emphasized that the fight was necessary to protect the future of the crypto industry in the U.S., noting that few companies had the resources to endure such a legal battle. While celebrating the apparent legal victory, Armstrong stressed the need for legislative action to establish clear and favorable crypto regulations in the U.S., cautioning that the country risks falling behind other nations without it.
— news from TechCrunch