SEC Officially Drops Lawsuit Against Coinbase, Crypto Industry Welcomes the Decision

The United States Securities and Exchange Commission (SEC) has officially dropped the lawsuit filed against Coinbase since 2023. The decision, announced on February 21, 2025, is seen as a major victory for the digital asset sector, especially amid regulatory uncertainty in the United States.

Case Background

The SEC initially sued Coinbase, alleging that the company operated as an exchange, broker, and clearing agency for securities without proper authorization. The regulator argued that some digital assets traded on the Coinbase platform fell under the category of securities and should have been legally registered.

Coinbase, on the other hand, denied the allegations from the start. The company asserted that its operations were fully compliant with applicable laws. Coinbase CEO Brian Armstrong emphasized that the company had always strived to adhere to regulations and collaborated with policymakers to establish clearer rules for the crypto industry.

Reasons for the Lawsuit Withdrawal

According to a report by The Verge, the SEC and Coinbase ultimately reached an agreement to settle the case without financial penalties or significant changes to the company’s operations. The report indicated that the lawsuit was dropped following intensive negotiations between both parties.

Additionally, changes in SEC leadership played a role in this decision. After being re-elected as President, Donald Trump appointed Paul Atkins as the new SEC Chairman, replacing Gary Gensler, who was known for his stricter approach toward digital assets. A report by Cinco Días suggested that this decision reflects a shift in the regulator’s stance on the crypto sector, which is now receiving more support from the government.

Impact on the Crypto Industry

The SEC’s decision has been a breath of fresh air for the digital asset industry. Many investors and industry players view it as a step toward clearer regulations that support innovation in the sector.

MarketWatch reported that the dismissal of the lawsuit against Coinbase opens up opportunities for other crypto companies to operate with greater confidence in a more stable regulatory environment.

Meanwhile, Coinbase has been actively involved in the political landscape by supporting various pro-crypto policies. According to The Verge, the company has donated over $75 million to pro-crypto political action committees during the last election cycle.

The lawsuit withdrawal marks a significant achievement for both Coinbase and the broader crypto community. This move is expected to accelerate the development of clearer regulations and foster innovation within the U.S. digital asset ecosystem.