Coinbase Claims Victory as SEC Agrees to Drop Enforcement Case

Coinbase has announced that the Securities and Exchange Commission (SEC) has agreed to drop its enforcement case against the crypto exchange. The decision, which still requires approval from SEC commissioners, marks a significant victory for Coinbase in its long-running legal battle with the regulator.

The SEC sued Coinbase in 2023, alleging that the platform operated as an unregistered national securities exchange, broker, and clearing agency, unlawfully profiting from crypto asset securities trading since 2019.

With the Trump administration in office and new SEC leadership, regulators are reassessing their approach to crypto, particularly the classification of tokens as securities.

Coinbase CEO Brian Armstrong called the decision “hugely vindicating,” while Chief Legal Officer Paul Grewal criticized the SEC’s “political leadership” under former chair Gary Gensler, accusing the agency of overstepping its authority.

Coinbase has been a key player in lobbying for pro-crypto policies, donating millions to support candidates in the 2023 elections.