Coinbase says the SEC has agreed to end ‘bogus’ enforcement case against crypto exchange

SEC Drops Case Against Coinbase: A Major Win for Crypto

Coinbase announced on Friday that the Securities and Exchange Commission (SEC) has agreed to drop its enforcement case against the company, pending final approval from the regulator’s commissioners.

Following the announcement, Coinbase stock surged 3% in early trading.

Background: SEC vs. Coinbase

In 2023, the SEC charged Coinbase with operating an unregistered securities exchange and failing to register its crypto staking program. The case was initiated under former SEC Chair Gary Gensler, who took a strict stance on cryptocurrency regulations.

However, with President Donald Trump in office and Paul Atkins nominated as the new SEC chair, the regulatory environment for crypto exchanges is expected to become more favorable.

Coinbase CEO Brian Armstrong Celebrates the Decision

Coinbase co-founder and CEO Brian Armstrong called the SEC’s decision a “huge day” for Coinbase and the crypto industry. Speaking on CNBC’s “Squawk Box,” Armstrong emphasized that the company will not pay any fines as part of the settlement.

“I think it’s a really important signal that, after a small group of activists in the prior administration tried to unlawfully attack this industry, we’re finally getting regulatory clarity in America,” Armstrong stated.

He also expressed hope that the SEC will dismiss other crypto-related cases, leading to a domino effect for the broader blockchain and digital asset sector.

Key Issue: Are Crypto Assets Securities?

A major point of contention in the case against Coinbase—and other crypto lawsuits under Gensler—was whether certain digital assets qualify as securities.

• The SEC argued that some cryptocurrencies fall under existing securities laws, requiring additional registration and compliance.
• The crypto industry pushed for a new regulatory framework that reflects the decentralized nature of digital assets.

An SEC spokesperson declined to comment on Coinbase’s announcement.

Trump Administration Signals Pro-Crypto Stance

Trump has embraced cryptocurrency throughout his 2024 presidential campaign, attending the Bitcoin Conferenceand accepting crypto donations from industry leaders.

On January 23, 2025, Trump signed an executive order to establish a working group focused on crypto regulations.

Following his election victory, the crypto market surged, with Bitcoin surpassing $100,000 for the first time. Meme coins have also gained popularity, including a Trump-themed cryptocurrency launched before his inauguration.

The Future of Crypto Regulation in the U.S.

The SEC’s decision to drop the case against Coinbase signals a potential shift in U.S. crypto policy. With Paul Atkins expected to bring a more favorable approach to digital assets, industry leaders anticipate clearer regulatory guidelines in the coming months.

This landmark decision marks a turning point for crypto exchanges, investors, and blockchain innovators looking for legal clarity in the U.S. market.