The U.S. Securities and Exchange Commission (SEC) is reportedly on the verge of dismissing its high-profile lawsuit against Coinbase, a major U.S.-based crypto exchange. According to Coinbase, the SEC will file a motion to dismiss the federal lawsuit alleging the exchange violated securities rules.

Coinbase Accused of Operating Unregistered Securities Exchange

In 2023, the SEC accused Coinbase of operating an unregistered securities exchange and offering unregistered securities. The case was one of the commission’s most significant crypto-related enforcement actions under former chair Gary Gensler. However, Coinbase vehemently refuted all allegations throughout the case, even launching a countersuit to compel clear rulemaking from the federal regulator.

A Shift in the SEC’s Crypto Regulatory Approach

The decision to dismiss the lawsuit against Coinbase signals a significant shift in the SEC’s approach under President Joe Biden compared to its stance during President Donald Trump’s administration. This is the first major crypto enforcement action likely to be withdrawn since President Trump took office and Chair Mark Uyeda launched a task force.

Coinbase’s CEO Brian Armstrong announced the decision, subject to approval by the agency’s leadership, led by interim chair Mark Uyeda. Armstrong expects confirmation by next week.

We’ve always maintained that we were right on the facts and the law, and today’s announcement confirms that this case should never have been filed in the first place. This is a victory not just for Coinbase but for our customers, the United States, and individual freedom.

Implications for the Crypto Industry

The dismissal of the lawsuit against Coinbase may have significant implications for the crypto industry. The SEC has also paused court proceedings in the Binance case, pending a resolution with the newly formed Crypto Task Force.

Key takeaways from the development include:

  • The SEC’s decision to dismiss the lawsuit against Coinbase may signal a more favorable regulatory environment for the crypto industry.
  • The case highlights the importance of clear rulemaking and guidance for crypto exchanges and companies.
  • The development may impact the ongoing case against Binance and other crypto-related enforcement actions.

Stay up-to-date with the latest news and developments in the crypto space on Global Crypto News.

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