SEC Drops Coinbase Case: A New Era for Crypto Regulation

The U.S. Securities and Exchange Commission (SEC) has dismissed its civil enforcement action against Coinbase and Coinbase Global, ending a legal battle that began in 2023. The dismissal was agreed upon through a joint stipulation, indicating a shift in the SEC's approach to cryptocurrency regulation.

Acting Chairman Mark T. Uyeda stated, "It's time for the Commission to rectify its approach and develop crypto policy in a more transparent manner. The Crypto Task Force is designed to do just that." The original lawsuit alleged that Coinbase operated as an unregistered securities exchange, broker, and clearing agency, facilitating crypto asset securities trading without proper registration since 2019.

The SEC maintains that the dismissal supports its broader regulatory reform efforts and does not reflect on the original claims' merits. However, critics like Better Markets have suggested that this could be a "historic mistake" that favors the crypto industry over strict enforcement.