SEC Drops Landmark Lawsuit Against Coinbase

The Securities and Exchange Commission (SEC) has dropped its landmark lawsuit against Coinbase, marking a significant victory for the cryptocurrency industry in the United States. The case, which began in June 2023, accused Coinbase of operating as an unregistered exchange, broker, and clearing agency.

The SEC also claimed that the platform listed unregistered securities, including SOL, ADA, MATIC, FIL, SAND, AXS, NEAR, and DASH. Coinbase chose to fight the lawsuit rather than settle, with CEO Brian Armstrong arguing that doing so was essential to prevent lasting harm to the US crypto industry.

The dismissal of the case comes after a change in leadership at the SEC, with former Chair Gary Gensler departing in January 2025 and being replaced by a more crypto-friendly administration. Commissioner Hester Peirce, known as 'Crypto Mom', is now leading a task force focused on digital asset innovation.

Coinbase's Chief Legal Officer Paul Grewal described the dismissal as a major victory for the company and the broader cryptocurrency industry. The platform's stock rose approximately 5% in pre-market trading following the announcement.