Big Win for Coinbase! Us SEC Drops Coinbase Lawsuit
The American securities regulatory body SEC ended the legal dispute with Coinbase crypto exchange.
Coinbase is a top-ranked crypto exchange known for its highly compliance crypto trading services. Despite following rules & laws, Coinbase was used by the United States Securities and Exchange Commission (SEC). Through the lawsuit, the SEC body alleged that Coinbase violated multiple securities laws because many crypto assets trading on the Coinbase platform were unregistered security tokens.
On 21 Feb 2025, the Coinbase exchange officially announced that the US SEC body agreed to dismiss the case against the Coinbase exchange. However, official work to terminate the case is still pending.
Coinbase CEO Brian Armstrong said that it is just beginning, and here it is not a win for Coinbase exchange, but instead for the whole crypto industry.
Furthermore, Armstrong talked about the similar lawsuits filed by the SEC body against multiple crypto companies, in which they labelled cryptocurrencies as unregistered security tokens.
Armstrong stated that despite the bad circumstances, the Coinbase leadership favoured customers’ demands using proper rules & laws, as Coinbase never did anything wrong. At the end, he thanked everyone for showing support with the exchange.
Coinbase chief legal officer Paul Grewal also shared his happiness on this development and said that there is still more work to do so that Coinbase will always remain away from unlawful behaviour of any regulatory body in the future. And also will continuously remain engaged in the fight to get clarity on the crypto rules.
Coinbase vs SEC Battle History
In April 2021 Coinbase went public. In 2022, the US SEC ordered Coinbase not to launch the USDC earning or yield program. In response, Coinbase’s CEO disclosed the SEC body was the only body that was not happy when Coinbase went public in 2021.
In 2023, the SEC body filed suit against Coinbase over providing unregistered security trading services in the US jurisdiction. Allegedly Coinbase failed to secure regulatory approval for Securities offerings.
In the same year, BinanceUS was also targeted by the SEC body. BinanceUS also faced Coinbase-like charges. At some point, BinanceUS restricted its majority of the crypto trading services, to comply with the regulatory bodies.
In November of the same year, the Kraken exchange also faced similar charges. It is worth it to know that already Kraken settled its case with a $30 million fine with the SEC for its Crypto staking services. However, the case is still pending between SEC & Kraken, but Kraken restarted its crypto staking services in the US jurisdiction this month.
Coinbase Stock Price Action
Following this news, the bull sentiments around the trade price of Coinbase ($COIN) stock surged rapidly. The current trade price of $COIN is $258 & this price level is 0.58% higher over the last 24 hours trade period.
Read also: Kanye West to Launch New Meme Token to Circumvent Shopify
Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
