Coinbase is claiming victory in its long-running tussle with the Securities Exchange Commission, stating that the regulator has agreed to drop its enforcement case against the crypto firm.
Coinbase chief legal officer Paul Grewal says SEC staff agreed in principle to dismiss its case, "righting a major wrong". The move still requires approval from the SEC commissioners.
The SEC sued Coinbase in 2023 for operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency. The complaint alleged that, since at least 2019, Coinbase "made billions of dollars unlawfully" through the buying and selling of crypto asset securities.
However, with Donald Trump in the White House and the SEC under new leadership, regulators are reassessing their approach to the crypto industry and specifically the classification of tokens as securities.
On X, Coinbase CEO Brian Armstrong says: "This is hugely vindicating, especially because many people questioned my decision to engage in litigation with the SEC on this matter in 2023."
In a blog, Grewel blames the "political leadership" at the SEC under chair Gary Gensler. He adds: "In its war against crypto it [the SEC] acted as if it was above the law, usurping the power of Congress as set forth in the Constitution.
"And after millions in legal costs and fees, countless employee hours, and years of protracted litigation, we have successfully protected our customers’ rights, and held the SEC accountable."
Coinbase has been at the forefront of the industry's efforts to influence Washington, donating tens of millions of dollars ahead of last year's elections to a federal super political action committee backing pro-crypto candidates.
Says Armstrong on X: "I have to give credit here to the Trump administration, for winning the election, and for the departure of the activist head of the SEC, Gary Gensler, who orchestrated this unlawful action along with Elizabeth Warren, and a handful of their lackeys in congress."