Coinbase, the largest crypto exchange in the U.S., announced on Friday that the SEC intends to drop its lawsuit against the exchange. This decision indicates a shift in regulatory approach under the Trump administration, which appears to be more supportive of the industry.
In a statement named “Righting a Major Wrong,” Coinbase revealed that SEC officials had reached a preliminary agreement to dismiss the lawsuit that was originally filed during President Biden’s tenure. The lawsuit accused the exchange of operating as an unregistered securities broker. However, the SEC still needs to hold a formal vote to officially drop the case.
Speaking to CNBC, Brian Armstrong, Coinbase’s CEO, expressed optimism, stating that this decision reflects a move away from what he described as an unfair crackdown by certain officials from the previous administration. He emphasized the importance of achieving regulatory clarity in the U.S. crypto sector.
Following the announcement, Coinbase shares saw a five percent increase, while Bitcoin (BTC) prices rose by one percent.
The decision to withdraw the case aligns with President Donald Trump’s commitment to easing regulatory restrictions on the crypto industry. Trump has pledged to position the U.S. as the global leader in cryptocurrency and even introduced a meme coin a few days before his inauguration.
When the SEC originally filed the lawsuit, it argued that Coinbase’s practices denied investors essential protections, such as measures to prevent manipulation and fraud, appropriate disclosures, conflict-of-interest safeguards, and regulatory oversight.
The then head of the SEC’s enforcement division, Gurbir S. Grewal, noted that financial regulations must be adhered to to safeguard investors, even if some businesses find them inconvenient.
The SEC has never classified BTC as a security, but under the former head Gary Gensler, the regulator was widely criticized by the crypto industry for its strict enforcement tactics and lack of clear regulations. Many in the industry felt that instead of working collaboratively to establish clear guidelines, the SEC was unfairly targeting crypto businesses.
Legal proceedings against other major crypto exchanges, including Kraken and Binance, remain ongoing.
In a post on X, Armstrong reiterated that Coinbase had made efforts to comply with regulatory requirements but was met with resistance. He argued that regulatory agencies should focus on enforcing existing laws rather than creating new rules without proper legislative approval or using legal ambiguity as a tool against the crypto industry.
The shifting stance of the current administration in Washington D.C. promises to give the entire crypto industry, including enterprises like Bit Mining Ltd. (NYSE: BTCM), some respite from “regulation by enforcement” and usher in an era characterized by clear rules that proactively guide the growth of the industry.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
