Coinbase CEO Claims SEC to Drop Lawsuit in Major Crypto Win

Coinbase CEO Brian Armstrong claimed the SEC plans to drop its lawsuit against the exchange without fines or operational changes, though the regulator has not confirmed this. The SEC had accused Coinbase of illegally operating as an exchange, broker, and clearing agency without proper registration. Armstrong credited pro-crypto voters and Trump’s election win for influencing the decision, highlighting a political shift favoring the industry. The lawsuit’s dismissal could set a precedent for clearer crypto regulations and reduced enforcement actions. Coinbase remains committed to advocating for transparent policies to support the growth of digital assets in the U.S.

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Coinbase Claims SEC Plans to Drop Lawsuit, Signaling Pro-Crypto Shift Under Trump

Coinbase CEO Claims SEC to Drop Lawsuit in Major Crypto Win

Coinbase CEO Brian Armstrong has claimed that the U.S. Securities and Exchange Commission (SEC) is set to drop its lawsuit against the cryptocurrency exchange.

The SEC initially accused Coinbase in 2023 of operating illegally by acting as an exchange, broker, and clearing agency without proper registration. The regulator also alleged that the company facilitated the sale of unregistered securities, generating billions of dollars in revenue while bypassing investor protections.

In a post on X, Armstrong stated that an agreement had been reached with SEC staff to dismiss the lawsuit without requiring Coinbase to pay fines or alter its business operations. However, the SEC has not officially confirmed this decision.

Armstrong described the potential dismissal as a major victory and credited pro-crypto voters for influencing the outcome. He also thanked President Donald Trump for his election win, suggesting that the political shift played a role in the regulator’s stance.

Additionally, he criticized former SEC Chair Gary Gensler, who led enforcement actions against crypto firms before stepping down in January. The SEC had previously taken similar action against Binance, though that case was recently paused for 60 days due to evolving regulations.

Paul Grewal, Coinbase’s chief legal officer, emphasized that the company did not reach a settlement or compromise but rather that justice was being served. He reiterated Coinbase’s commitment to advocating for clear regulations that support the growth of the cryptocurrency industry in the U.S.

A Turning Point for Crypto Regulation

The potential dismissal of the case marks a significant moment for the crypto industry, which has faced increasing scrutiny and regulatory challenges in the U.S. over the past few years. The SEC’s legal actions against Coinbase and other major exchanges, including Binance, have raised concerns about regulatory overreach and uncertainty in the sector.

If the lawsuit is indeed dropped, it could set a precedent for how digital asset companies operate in the U.S. and influence future regulatory decisions. Many in the crypto industry argue that existing securities laws are outdated and do not adequately account for the decentralized nature of blockchain technology.

Armstrong has been a vocal advocate for clearer crypto regulations, frequently urging lawmakers to establish comprehensive frameworks that support innovation while ensuring consumer protection. The CEO has repeatedly criticized the SEC for what he describes as a “regulation-by-enforcement” approach rather than creating well-defined guidelines for compliance.

Political Influence and Trump’s Crypto Stance

Armstrong described the potential dismissal as a major victory and credited pro-crypto voters for influencing the outcome. He also thanked President Donald Trump for his election win, suggesting that the political shift played a role in the regulator’s stance.

Trump had made crypto-friendly statements during his campaign, pledging to reduce regulatory pressure on the industry. He also expressed opposition to SEC Chair Gary Gensler’s strict enforcement actions against cryptocurrency firms and even stated that he would fire Gensler on “day one” of his presidency.

With the change in administration, there is speculation that regulatory agencies will adopt a more lenient approach toward digital assets, possibly paving the way for more institutional investment in crypto markets.

Ongoing Legal Battles and Industry Impact

Additionally, Armstrong criticized former SEC Chair Gary Gensler, who led enforcement actions against crypto firms before stepping down in January. The SEC had previously taken similar action against Binance, though that case was recently paused for 60 days due to evolving regulations.

Paul Grewal, Coinbase’s chief legal officer, emphasized that the company did not reach a settlement or compromise but rather that justice was being served. He reiterated Coinbase’s commitment to advocating for clear regulations that support the growth of the cryptocurrency industry in the U.S.

The outcome of the Coinbase lawsuit could have significant implications for other crypto firms facing regulatory scrutiny. A dismissal would likely embolden industry leaders to push for more favorable policies and legislative action to clarify the status of digital assets.

While the SEC has yet to confirm Armstrong’s claims, the news has already sparked optimism among crypto investors and advocates. The industry remains hopeful that 2025 will bring regulatory clarity and greater acceptance of digital assets in mainstream finance.

Coinbase Claims SEC Plans to Drop Lawsuit, Signaling Pro-Crypto Shift Under Trump

Coinbase has announced that staff at the U.S. Securities and Exchange Commission (SEC) have agreed in principle to drop the agency’s lawsuit against the cryptocurrency exchange. However, the decision still requires approval from SEC commissioners. The move signals a potential shift toward a more crypto-friendly regulatory approach under President Donald Trump’s administration.

The lawsuit, filed by the SEC in June 2023, accused Coinbase of violating U.S. securities laws by operating as an unregistered national securities exchange, broker, and clearing agency. This legal action was part of a broader crackdown on the crypto industry, which also included charges against Binance for offering unregistered securities.

In a statement on Friday, Coinbase called the decision a victory not only for the company but also for its customers and financial freedom in the U.S. The exchange criticized the SEC’s regulatory approach, arguing that the lawsuit—filed two years after Coinbase’s 2021 public listing—was politically motivated.

Coinbase’s stock initially rose 4.4% after the announcement but later fell 8.3% due to a broader market downturn.

The potential dismissal would mark a significant departure from the SEC’s stance under former chair Gary Gensler, who was appointed by President Joe Biden. Gensler had described the crypto industry as a “Wild West” full of fraud and implemented aggressive enforcement actions against digital asset firms.

Trump has signaled a more favorable stance toward the crypto industry, even signing an executive order to strengthen his control over independent regulatory agencies like the SEC. He has also nominated Paul Atkins, a known crypto advocate, to lead the commission.

Coinbase emphasized that while the lawsuit’s dismissal would be a legal victory, it would also represent a win for the entire crypto sector and the 52 million Americans who have owned digital assets. The SEC has not provided any official comments on the matter.