The Securities and Exchange Commission (SEC) has agreed to dismiss its high-stakes lawsuit against Coinbase, pending final approval from the commission. Shares of the cryptocurrency platform surged 3% following the announcement, though the SEC has not yet publicly confirmed the decision. This development signals potential shifts in U.S. regulatory approaches to digital assets under the Trump administration.
In June 2023, the SEC accused Coinbase of operating as an unregistered securities exchange and brokerage. The agency argued the platform facilitated billions in crypto trades without providing investor protections. The lawsuit sought penalties including disgorgement of profits, fines, and injunctive relief.
But this isn’t the end. It’s the beginning,Coinbase stated on X. If there were ever a time to build—that time is now.
The crypto industry has intensified political efforts since Trump’s election, spending millions to support pro-regulation lawmakers. Recent wins include:
- The SEC’s repeal of a controversial accounting rule
- An executive order directing crypto regulatory reforms
- Plans for a federal digital asset reserve
Notably, the SEC recently paused litigation against Binance, suggesting broader reconsideration of enforcement strategies. Analysts warn the Coinbase dismissal—if approved—could set precedent for balancing innovation with oversight.
As Trump appoints more crypto-friendly regulators, industry leaders anticipate reduced legal barriers. However, experts emphasize the need for clear guidelines: Voluntary dismissals don’t create legal certainty,said financial attorney Mara Lipton. The industry still requires definitive rules for securities classification.
The SEC’s potential retreat underscores crypto’s growing political clout. With a record $102 million spent on 2024 election lobbying, proponents aim to cement crypto’s role in mainstream finance while curbing regulatory overreach.
