Michaela
The U.S. Securities and Exchange Commission (SEC) has dismissed its lawsuit against Coinbase Inc. and Coinbase Global Inc. This move marks another instance of the agency withdrawing legal action against crypto exchanges.
In a February 27 press release, the SEC and Coinbase announced a joint stipulation to formally end their legal dispute, bringing an end to a prolonged battle between the regulator and the crypto exchange.
The SEC formally agreed to drop all legal proceedings against Coinbase and Coinbase Global “with prejudice,” ensuring that the claims cannot be refiled in the future. This decision includes the withdrawal of its original lawsuit from June 2023, as well as its request for an interlocutory appeal with the U.S. Court of Appeals, effectively bringing the case to a definitive close.
This development follows a February 21 agreement between the regulator and Coinbase to formally conclude their legal dispute.
“The Commission’s decision to exercise its discretion and dismiss this pending enforcement action rests on its judgment that the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry, not on any assessment of the merits of the claims alleged in the action,” the SEC stated stated in a press release.
Furthermore, the SEC clarified in its joint stipulation that its decision to dismiss the lawsuit against Coinbase does not indicate a broader policy shift, stating that “the Commission’s decision to seek dismissal of this litigation does not reflect the Commission’s position on any other case.”
In a lengthy post on X, Coinbase CEO Brian Armstrong shared his thoughts on the SEC’s dismissal ahead of the official approval from the commission. “After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase,” Armstrong wrote.
The dismissal of the lawsuit was met with a positive response from the crypto community, with one user describing it as “great news” and expressing optimism that the industry could now concentrate on “innovation and growth.”
The SEC’s decision to drop its lawsuit against Coinbase comes amid a series of case dismissals, including recently withdrawn lawsuits against Consensys, Robinhood, and Gemini.
In June 2023, the SEC filed a lawsuit against Coinbase, alleging that the exchange violated regulatory guidelines by allowing the trading of certain cryptocurrencies that the agency classified as securities. The case centered on the SEC’s claim that Coinbase failed to properly register these assets under federal securities laws.
Read More
- Coinbase Adds CFTC-Approved Solana, Hedera Futures Amid Legal Tussle
- SEC Seeks 28-Day Delay to Review Coinbase Appeal in Crypto Lawsuit
- Coinbase Eyes Return to India Amid Regulatory Shift and Security Risks
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
