Cryptocurrency exchange Coinbase expects the U.S. Securities and Exchange Commission (SEC) to drop its lawsuit against the company. This development would mark a major win for the crypto industry in the United States, paving the way for broader adoption of digital assets.
Coinbase made the announcement in a release posted on their website, saying that the “SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval.”
“We’ve always maintained that we were right on the facts and the law, and today’s announcement confirms that this case should never have been filed in the first place. This is a victory not just for Coinbase, but for our customers, the United States, and individual freedom,” the release stated.
Back in 2023, the SEC filed a lawsuit against Coinbase, arguing that the digital assets traded on the platform constituted “unregistered securities” and could result in financial harm for the users. It was one of several cases that saw the SEC take on major crypto companies.
However, the SEC is now changing course under new crypto-friendly leadership. The agency is in the process of amending its regulations and reviewing past lawsuits with the intention to seek settlements.
Coinbase stock traded higher early on Friday before dropping by 8.27% by the end of the day to close at $235.38 per share. The company’s shares have been down since the start of the year after improving by as much as 70% at the beginning of December.