SEC May Drop Lawsuit Against Coinbase: What Does This Mean for the Crypto Market
Date: 2025-02-24 Author: Gabriel Deangelo Categories: BUSINESS
Coinbase sees this as a potential victory not only for itself, but for the entire crypto industry. Exchange representatives emphasize the importance of transparent regulation that can prevent abuses by regulators.
“The dismissal of the case could become a model for resolving other SEC disputes with crypto companies,” said Coinbase General Counsel Paul Grewal.
The lawsuit was filed by the regulator in 2023. The SEC accused the exchange of operating as an unregistered broker, arguing that its services fall under securities laws. However, Coinbase has denied the claims from the outset, insisting that its activities do not violate the law. Despite significant legal costs, the company was able to protect the interests of its clients and demonstrate the need for clear regulation of the crypto market in the United States.
A week ago, it became known that the SEC and Binance jointly asked the court to stay the trial for 60 days. The case against Binance was filed in June 2023, and the regulator brought 13 charges, including illegally providing brokerage services, operating an unregistered exchange, and operating a clearing house.
The request to freeze the case is related to the work of a new task force that is working to develop a clear regulatory framework for cryptocurrencies. Its creation followed the inauguration of President Donald Trump on January 20.
Acting SEC Chairman Mark Uyeda appointed Commissioner Hester Peirce to oversee the group. She is known for her support of the crypto industry and has earned the nickname Crypto Mom for her efforts to shape reasonable regulation in the digital asset sector.
Under the previous SEC leadership, headed by Gary Gensler, the regulator prosecuted crypto companies for activities related to unregistered securities, which violated American law.
In recent years, the SEC has sent notices of investigations to major market players, including Coinbase, Kraken, CryptoCom, OpenSea, Robinhood, Immutable, Uniswap, and the developers of the MetaMask wallet, Consensys.
Hester Peirce emphasized that reforming the SEC's policy on cryptocurrencies is a complex process that requires the participation of all stakeholders. The regulator seeks to find a balance between protecting investors and supporting innovation, she noted.
