YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has dismissed its lawsuit against Coinbase, court filings on Feb. 27 confirm. The voluntary dismissal closes the June 2023 case, where the SEC accused the crypto exchange of operating without proper registration.
SEC Voluntarily Dismisses Lawsuit Against Coinbase in U.S. District Court Filing. Source: U.S. District Court for the Southern District of New YorkThe SEC also withdrew its interlocutory appeal with the U.S. Court of Appeals, signaling changes in its enforcement approach. This decision follows an agreement between both parties on Feb. 21.
SEC Withdraws Multiple Crypto Lawsuits
Coinbase is not the only company affected. The SEC also dismissed lawsuits against Consensys, Robinhood, Gemini, Uniswap, and OpenSea in recent weeks. The agency stated that the dismissals align with efforts to revise its regulatory approach to cryptocurrency.
The SEC’s acting chair, Mark Uyeda, addressed the shift, stating,
“It’s time for the Commission to rectify its approach and develop crypto policy in a more transparent manner.”
Mark Uyeda, commissioner at U.S. Securities and Exchange Commission, speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, U.S., May 2, 2023. REUTERS/Mike BlakeSEC Shifts Approach After Leadership Change
Under former Chair Gary Gensler, the SEC focused on regulation by enforcement, bringing legal action against major crypto firms, including Coinbase.
On Jan. 21, just one day after U.S. President Donald Trump’s inauguration, the SEC created a Crypto Task Force led by Commissioner Hester Peirce to review its regulatory strategy. This step suggests possible changes in crypto oversight.
SEC Commissioner Hester Peirce Introduces Crypto Task Force in ‘The Journey Begins’ Statement. Source: U.S. Securities and Exchange CommissionCoinbase Fought SEC’s Allegations
Coinbase, led by Chief Legal Officer Paul Grewal, strongly opposed the SEC’s claims. The lawsuit alleged that Coinbase failed to register as a broker, national securities exchange, or clearing agency. The SEC also accused Coinbase of listing unregistered securities, including Solana (SOL), Cardano (ADA), Polygon (MATIC), and Filecoin (FIL).
Coinbase pointed out that the SEC had approved its public listing on Nasdaq in April 2021, yet later sued the company over regulatory issues. The contradiction raised concerns about the SEC’s approach.
Nasdaq Announces Coinbase Global Direct Listing With COIN Ticker and $250 Reference Price. Source: NasdaqWhat’s Next for Crypto Regulation?
With multiple lawsuits dropped and a Crypto Task Force in place, changes in U.S. crypto regulation may follow. The SEC’s recent actions indicate a possible shift from previous enforcement strategies. However, future regulatory developments remain uncertain.
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