Coinbase on Friday stated that the SEC has agreed to dismiss the lawsuit against the company with prejudice, meaning it cannot be filed again.
The decision, pending approval from the SEC’s Commissioners, suggests that the Trump administration intends to be more supportive of crypto compared to the SEC under former leader Gary Gensler.
The SEC’s lawsuit, filed in 2023, claimed that crypto assets were securities and accused Coinbase of operating as “an unregistered national securities exchange, broker, and clearing agency.”
Coinbase responded by arguing that the SEC had not provided clear guidelines on crypto, making it difficult to be sued for non-compliance.
In a video posted on X, Coinbase CEO Brian Armstrong revealed that he fought the case to save the American crypto industry and critiqued the SEC’s motives and strategies.
Armstrong emphasized that the $50 million spent on the legal battle was necessary to protect the industry and challenge the SEC’s actions.
A Coinbase spokesperson confirmed that the $50 million solely covered external legal fees, not employee time.
Despite this legal win, Armstrong stressed the importance of establishing legislation for crypto in the U.S. to ensure favorable regulations and prevent falling behind other nations.
