Coinbase, a prominent US crypto exchange, has won a significant victory in its long-running lawsuit against the Securities and Exchange Commission (SEC). In a move seen as a major win for the crypto industry, the SEC agreed to dismiss the case in principle, subject to Commissioner approval.
The development comes as President Donald Trump’s administration continues to show support for cryptocurrencies. Trump has appointed an AI and crypto czar, issued a pro-crypto executive order, and even launched his own memecoin. Additionally, the new head of the SEC, Paul Atkins, who is a pro-crypto commissioner, has steered the agency away from its more aggressive approach to crypto enforcement.
The lawsuit against Coinbase was filed by the SEC in June 2023, alleging that certain cryptocurrencies listed on the exchange were securities and therefore subject to SEC regulation. The case had been highly contentious, with Coinbase arguing that cryptocurrencies were new financial assets that did not fit into decades-old financial law.
Coinbase CEO Brian Armstrong has long been a vocal advocate for crypto and has met with Trump privately after his election. The company’s influence campaign to sway politicians to support crypto was also seen as a significant factor in the SEC’s decision.
The move is seen as a major victory for the crypto industry, which had faced increased scrutiny from the SEC under the previous administration. With this win, Coinbase and other top crypto companies can breathe a sigh of relief and look forward to a more favorable regulatory environment.
Source: https://finance.yahoo.com/news/coinbase-says-sec-agrees-major-145347547.html