The U.S. Securities and Exchange Commission (SEC) staff has agreed in principle to dismiss its enforcement case against Coinbase, pending Commissioner approval. This decision is seen as a significant development for the cryptocurrency exchange platform.
Coinbase's Chief Legal Officer, Paul Grewal, said, "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." He described the decision as a victory not only for Coinbase but also for its customers and individual freedom in the United States.
Coinbase went public in April 2021 after an SEC review of its business model and disclosures. Two years later, the SEC initiated legal action against Coinbase despite no changes in its business model. Grewal attributed this shift to changes in political leadership at the SEC.
Grewal emphasized that dismissal of the case would be a win for the rule of law and a vindication of Coinbase's position. He also stressed the importance of passing legislation to provide long-term certainty for innovation in America, ensuring regulators cannot exploit unclear regulations.
The blog post from Coinbase contained forward-looking statements regarding ongoing litigation with the SEC. These statements are based on management's beliefs and assumptions as of their date and are subject to risks and uncertainties.
In related news, DL News reported that on February 11, the SEC and Binance requested a 60-day pause in their lawsuit involving Binance's co-founder Changpeng Zhao. The SEC cited potential impacts from its new crypto task force led by Commissioner Hester Peirce.
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