The US Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against cryptocurrency exchange Coinbase, effective immediately. The move marks a significant shift in the agency’s stance on crypto regulations under the Trump administration.
In 2023, the SEC filed charges alleging that Coinbase was operating as an unregistered national securities exchange, broker, and clearing agency. However, Coinbase argued that the agency had not established clear enough rules governing cryptocurrency transactions.
According to Coinbase CEO Brian Armstrong, the company spent $50 million defending against the lawsuit, which exceeded initial expectations. “Not as many other companies had deep pockets like we did,” Armstrong said in a statement.
Armstrong believes that the industry’s financial backing was crucial in securing a favorable outcome. He emphasized the need for legislation to codify regulations favoring crypto in the US, arguing that failure to do so could lead to the country falling behind global peers.
The SEC’s decision is seen as a significant victory for Coinbase and the broader crypto industry, which has been subject to increasing regulatory scrutiny in recent years.
Source: https://techcrunch.com/2025/02/21/brian-armstrong-says-coinbase-spent-50m-fighting-sec-lawsuit-and-beat-it