SEC Drops Coinbase Case, Signaling Shift in Crypto Policy

The U.S. Securities and Exchange Commission (SEC) has dropped its case against Coinbase, marking a significant shift in the agency's stance on cryptocurrencies. The move comes after the SEC's acting chair, Mark Uyeda, called for a more transparent approach to crypto policy.

The dismissal of the main enforcement case against Coinbase does not resolve all legal matters involving the company and the SEC. Coinbase is still pursuing a petition to force the SEC to establish crypto rules and seeking internal documents to reveal the regulator's private deliberations on digital assets. However, this enforcement case was the top legal concern for the U.S. public company, which sought to elevate central legal questions about what makes a crypto security and when and how a digital assets exchange should register with the agency.

Once the SEC's previous leadership, including crypto skeptic chairman Gary Gensler, departed, the temporary chair elevated by President Donald Trump, Mark Uyeda, began overhauling the agency's legal officials and its stance on digital assets. Uyeda named fellow Republican Commissioner Hester Peirce to run the agency's crypto task force, and both have been vocal critics of Gensler's approach to the industry.

The SEC's changed view on Coinbase will cause the exchange to shift its focus in Washington towards Congress and legislation. Coinbase is among the digital assets businesses that led the creation and deployment of the Fairshake PAC in the 2004 elections, collectively devoting more than $160 million to an effort to elect crypto-friendly candidates to office. Now, Coinbase is seeking to get a return on that investment with regulations it considers favorable.

The Fairshake PAC, which shook up the campaign-finance world with its outsized corporate spending levels, is still active, dabbling in special elections as it prepares for the 2026 cycle.