Dismissal Still Awaits Commission Approval Amid Industry’s Political Influence
Coinbase (COIN) announced on Friday that the U.S. Securities and Exchange Commission (SEC) has dismissed its lawsuit against the cryptocurrency platform, pending final approval from the commission. The news sent Coinbase shares up 3% at market open, though the SEC has yet to confirm the decision.
The move aligns with a broader trend under the Trump administration, which has taken a more lenient stance on cryptocurrency regulations. The crypto industry, which invested heavily in pro-crypto political campaigns, has been eager to cement its influence in Washington and push for friendlier regulatory policies.
The SEC initially filed suit against Coinbase in June 2023, alleging the company operated as an unregistered securities exchange and brokerage service. The regulator argued that Coinbase made billions by facilitating cryptocurrency transactions but failed to provide investors with legal protections required under securities laws. The SEC had sought financial penalties, disgorgement of profits, and other corrective actions.
On Friday, Coinbase posted on the social media platform X, confirming the dismissal. “But this isn’t the end. It’s the beginning,” the company wrote. “And if there were ever a time to build—that time is now. Thank you to everyone who stood with us, and stood with crypto.”
This development follows a series of favorable regulatory changes for the crypto industry since Trump’s return to office. Notably, the SEC recently repealed an accounting rule that had been a hurdle for digital asset firms, and the administration issued an executive order to explore new regulatory frameworks and the possible creation of a government crypto reserve.
Additionally, the SEC recently asked a federal court to pause litigation against Binance, the world’s largest cryptocurrency exchange, as the agency re-evaluates its enforcement actions.
While Coinbase’s legal battle with the SEC may be nearing an end, the case highlights a broader shift in U.S. crypto policy. As regulatory scrutiny eases, the industry could gain momentum in integrating digital assets into mainstream finance.
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