SEC Decides To End Lawsuit Against Coinbase

Coinbase has announced that the U.S. Securities and Exchange Commission (SEC) plans to drop its case against the company.

The case was about Coinbase running its crypto business without proper approval. Two years ago, the SEC first took action against Coinbase. The regulator said Coinbase earned money in a way that goes against the rules.

Paul Grewal, who is the Chief Legal Officer at Coinbase, said this decision corrects a serious mistake. He stated that the SEC’s actions were unfair and Coinbase is glad about this outcome. Grewal also said this is a huge step for both the company and the crypto industry. Many in the industry believe this could bring better rules for crypto in the future.

The SEC’s Lawsuit Claimed Coinbase Earned Billions In A Way That Broke The Rules

The Security and Exchange Commission first sued Coinbase for running a crypto trading business without proper registration. The complaint claimed that since 2019, Coinbase earned billions of dollars in a way that goes against the rules.

According to the SEC, Coinbase acted as an exchange, broker, and clearing agency without following the law. This lawsuit caused many problems for the company over the years. The regulator said its commissioners must give their approval before the case will be completely dismissed.

With Donald Trump now in the White House, the government’s view on crypto is changing. The SEC has new leaders who seem to have different opinions on digital currencies. This could mean more support for crypto businesses in the future. Some believe this change in leadership helped Coinbase win this fight.

Brian Armstrong, the leader of Coinbase, shared his thoughts on social media. He said this decision proves that Coinbase was right to challenge the regulator. Armstrong noted that some individuals thought Coinbase should not fight back, but now it is clear they made the right choice. He believes this result is very important for the future of crypto.

Paul Grewal also wrote a blog post about the case and its outcome. He blamed the previous SEC leadership, saying they acted as if they were above the law. Grewal stated that the SEC’s actions cost Coinbase millions in legal fees. He added that the company has worked hard to protect its customers and fight against unfair treatment.

Coinbase Aims To Boost Support For Cryptocurrencies

Coinbase has also spent a lot of money trying to influence lawmakers. It has given millions of dollars to support politicians who like crypto. The company hopes this will help create better rules for the industry. Many in the crypto world believe strong support in Washington will help businesses grow.

Armstrong praised the Trump administration for helping with this decision. He said that new leadership at the SEC has brought fairness to the crypto industry. He accused former SEC Chair Gary Gensler of leading unfair actions against crypto. Armstrong believes this decision will help the industry grow in the right direction.

The decision is a huge victory for Coinbase and the crypto world. Many believe it shows that the government is changing how it looks at crypto. The industry now hopes for rules that are clear and fair for businesses. If the SEC officially drops the case, it could set an example for future crypto rules.

Even though this is good news for Coinbase, the company said there is still work to do. It wants the government to create clear rules for crypto businesses to follow. This would help stop the company from going through false lawsuits. Many in the industry are watching closely to see what happens next.