SEC Drops Lawsuit Against Coinbase, Ending Its June 2023 Case

The U.S. Securities and Exchange Commission (SEC) has dismissed its lawsuit against Coinbase, court filings on Feb. 27 confirm.

The U.S. Securities and Exchange Commission (SEC) has dismissed its lawsuit against Coinbase, closing the case that began in June 2023, where the agency accused the crypto exchange of operating without proper registration, court filings on Feb. 27 confirm.

The regulator also withdrew its interlocutory appeal with the U.S. Court of Appeals. Both parties had agreed to settle the case on Feb. 21.

Coinbase is not the only company affected, as the SEC dismissed lawsuits against Consensys, Robinhood, Gemini, Uniswap, and OpenSea in recent weeks.

The agency stated that the dismissals align with its efforts to revise its regulatory approach to cryptocurrency.

“It’s time for the Commission to rectify its approach and develop crypto policy in a more transparent manner,” said the SEC’s acting chair, Mark Uyeda.

The past year has seen a shift in the SEC’s crypto strategy. Former Chair Gary Gensler focused on regulation by enforcement, bringing legal action against major crypto firms.

However, President Donald Trump’s inauguration on Jan. 21 saw the SEC create a Crypto Task Force to review its regulatory strategy. This step suggests possible changes in crypto oversight.

The task force, led by Commissioner Hester Peirce, will advise the SEC on how to regulate the digital asset industry.

Coinbase had fiercely contested the SEC’s lawsuit, which also accused the exchange of listing unregistered securities.

The complaint targeted Solana (SOL), Cardano (ADA), Polygon (MATIC), and Filecoin (FIL), among other tokens allegedly sold without proper registration.

Coinbase argued that the SEC’s actions were contradictory, considering it had approved the exchange’s public listing on Nasdaq in April 2021.

The company stated that the lawsuit was an attempt to force Coinbase to register as a broker-dealer, despite prior discussions with the SEC on applying for such registration.

Moreover, Coinbase highlighted the SEC’s division on whether to pursue an administrative or judicial route to settle the case. This internal debate, reported by The Block, showcased the internal complexities faced by the regulator.