SEC Concludes Two-Year Review of Coinbase Disclosures

The Securities and Exchange Commission (SEC) has concluded its extensive review of Coinbase’s financial disclosures, spanning over two years, without necessitating any amendments or restatements. This resolution was confirmed in a letter released by the agency and shared by Coinbase’s Chief Legal Officer, Paul Grewal.

In an April 15 social media post, Grewal noted that the conclusion of the review follows more than two years of engagement with the SEC’s Division of Corporation Finance. He stated, “We’ve fully resolved – without restatements or amendments – a number of comments related to our disclosures.” Grewal also emphasized Coinbase’s ongoing commitment to “bringing the next billion onchain and building world-class products.”

The letter, dated March 17, was addressed to Coinbase Chief Financial Officer Alesia Haas. It confirmed the completion of the SEC’s review of the company’s Form 10-K filings for the fiscal years ending December 31, 2022, and 2023. The letter reminded the company and its management of their responsibility for the accuracy and adequacy of their disclosures, while also clarifying that the completion of the review does not constitute an endorsement of the filings.

The conclusion of this review marks the end of a prolonged comment process that began shortly after Coinbase went public in April 2021. The company’s operations and disclosures have remained under regulatory scrutiny amid evolving standards for digital asset companies navigating US securities law. This development comes at a time when the regulatory landscape has shifted dramatically since the return of President Donald Trump to office in January. His administration has signaled a departure from the aggressive enforcement-led approach championed by former SEC Chair Gary Gensler under the previous administration.

The regulator has already dismissed several lawsuits against crypto firms, including its legal action against Coinbase, and is actively working on developing a regulatory framework for the industry under its new leadership. This shift in approach is expected to provide a more stable and predictable environment for digital asset companies, fostering innovation and growth in the sector.