SEC Drops Coinbase Lawsuit, Signaling Crypto Policy Shift
The U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Coinbase, the largest cryptocurrency exchange in the United States, the company announced on February 21, 2025. The decision, which is pending formal approval from SEC commissioners, marks a major shift in the agency’s cryptocurrency regulatory policy, offering hope to the entire crypto industry.
SEC pivots in Coinbase lawsuit
Coinbase said that the SEC staff has agreed in principle to withdraw its enforcement action against the exchange, pending approval from commissioners. The company has long challenged the SEC’s stance on digital assets, calling the move a step toward greater clarity in cryptocurrency regulation in the United States.
Paul Grewal, Coinbase’s chief legal officer, said: “This is a win not just for Coinbase, but for our customers, the United States, and individual freedom.”
SEC Charges Against Coinbase
In June 2023, the SEC sued Coinbase, alleging that the platform operated as an unregistered broker, exchange, and clearinghouse. The regulator also claimed that Coinbase’s staking program amounted to an unregistered securities offering. Coinbase denied the allegations, arguing that it did not list securities and that the SEC’s lawsuit lacked legal merit.
The lawsuit is expected to be formally dismissed following a committee vote next week. Following the announcement, Coinbase (COIN) shares rose 4.4% to around $270.69, reflecting investor confidence in the company’s regulatory outlook.
SEC’s Shift in Enforcement Strategy
The SEC’s decision to drop the lawsuit against Coinbase comes amid a review of its crypto enforcement strategy. Previously, in June 2023, the SEC sued Binance, accusing it of operating as an unregistered securities platform. In February 2025, both parties filed a joint motion to halt the proceedings for 60 days, hinting at a potential resolution.
The SEC’s legal battle with Ripple over XRP classification also continues, with the agency recently filing an appeal despite changes in leadership. These moves signal a shift in regulatory strategies, potentially paving the way for a more structured approach to cryptocurrency oversight.
Significance of the decision
The SEC’s move reduces regulatory risk for Coinbase and signals a potential shift in the agency’s approach to cryptocurrency oversight. The decision boosts investor confidence and could set a precedent for future regulatory action in the sector. The U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Coinbase, the largest cryptocurrency exchange in the United States, the company announced on February 21, 2025. The decision, which is pending formal approval from SEC commissioners, marks a significant shift in the agency’s cryptocurrency regulatory policy, giving hope to the entire crypto industry.
SEC Shifts in Coinbase Lawsuit
Coinbase said that the SEC staff has agreed in principle to withdraw its enforcement action against the exchange, pending approval from commissioners. The company has long challenged the SEC’s stance on digital assets, seeing the move as a step toward greater clarity in cryptocurrency regulation in the United States.
“This is a victory not just for Coinbase, but for our customers, the United States, and individual liberty,” said Paul Grewal, Coinbase’s chief legal officer.
SEC’s charges against Coinbase
In June 2023, the SEC sued Coinbase, alleging that the platform operated as an unregistered broker, exchange, and clearinghouse. The regulator also claimed that Coinbase’s staking program amounted to an unregistered securities offering. Coinbase denied the allegations, arguing that it did not list securities and that the SEC’s lawsuit lacked legal merit.
The lawsuit is expected to be formally dismissed following a committee vote next week. Following the announcement, Coinbase (COIN) shares rose 4.4% to around $270.69, reflecting investor confidence in the company’s regulatory outlook.
.png)
A Shift in SEC Enforcement Strategy
SEC Decision The dismissal of the case against Coinbase comes as the agency reevaluates its crypto enforcement strategy. The SEC previously sued Binance in June 2023, alleging that the exchange was operating as an unregistered securities platform. In February 2025, both parties filed a joint motion to halt the proceedings for 60 days, hinting at a potential resolution.
The SEC’s legal battle with Ripple over XRP’s classification also continues, with the agency recently filing an appeal despite leadership changes. These moves