The Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against cryptocurrency exchange Coinbase, a major victory for the industry. The settlement, reached in principle, will have the lawsuit withdrawn without any financial penalty.
Coinbase had faced allegations that the digital currencies sold on its platform constituted unregistered securities, putting consumers at risk of financial harm. However, the company has denied any wrongdoing and claims that the SEC’s case was “unlawful enforcement” action.
The settlement is a significant win for the crypto industry, which has been subject to increased scrutiny from regulators in recent years. Coinbase’s chief legal officer, Paul Grewal, described the agreement as a “complete win,” stating that the company would not have to admit to any wrongdoing or pay a fine.
Shares of Coinbase rose about 3% in early trading on Friday following the announcement. The move is seen as a major shift by the SEC, which had been aggressively pursuing crypto companies under the leadership of former Chairman Gary Gensler.
The settlement comes at a time when President Trump has taken steps to advance the interests of the crypto industry, including appointing a venture investor with close ties to the industry as his “crypto and A.I. czar.” Coinbase was one of the top funders of a super PAC that donated millions to legislative candidates.
While some experts have expressed concerns about the implications of the settlement, others see it as an opportunity for regulatory clarity and consistency. The SEC’s apparent willingness to compromise on its enforcement efforts is seen by many as a sign of changing times in Washington, where regulators are increasingly influenced by industry lobbying efforts.
Source: https://www.nytimes.com/2025/02/21/technology/coinbase-sec-lawsuit.html