SEC Drops Coinbase Lawsuit: Armstrong Calls it "Vindication"

The U.S. Securities and Exchange Commission (SEC) has reached an agreement to dismiss its lawsuit against crypto exchange Coinbase, pending approval by the regulator. This development comes after years of litigation and significant costs to taxpayers. Coinbase CEO Brian Armstrong took to Twitter to announce the news, describing it as "hugely vindicating" and accusing the SEC of using "mafia tactics" during the lawsuit.

Armstrong also stated that the SEC was "wrong on the law," and its actions could have potentially stifled the crypto industry in the United States. Coinbase's Chief Legal Officer, Paul Grewal, echoed this sentiment, tweeting that "there will be no settlement or compromise-- a wrong will simply be made right."

In June 2023, the SEC filed a lawsuit against Coinbase in the Southern District of New York, alleging that the exchange had been operating an unregistered securities exchange for a decade. The complaint, spanning over 100 pages, was filed just days after a similar suit against Binance. Armstrong responded to the allegations, asserting that Coinbase had taken a "conservative approach" to ensure it had not listed securities and that the exchange had attempted to "come in and register" but found the process to be flawed.

This agreement to dismiss the lawsuit marks a significant turning point in the ongoing legal battle between the SEC and Coinbase. As the crypto industry continues to evolve, this development may have broader implications for the regulation of digital assets in the United States.