Coinbase CEO: SEC Lawsuit Likely to Be Dropped
Coinbase CEO Brian Armstrong has announced that the U.S. Securities and Exchange Commission (SEC) is expected to drop its lawsuit against the company.
Armstrong shared the news on X (formerly Twitter), stating that an agreement was reached with the SEC staff to dismiss the legal action.
This potential dismissal would mean Coinbase wouldn’t have to pay any fines or change its operating methods.
The SEC had previously alleged in 2023 that Coinbase had broken the law by offering investments without proper registration.
Armstrong expressed that the potential outcome would be “hugely vindicating.”
The SEC’s case accused Coinbase of operating illegally within the U.S. by functioning as an exchange, broker, and clearing agency without proper registration, as required by law.
The regulator also claimed that Coinbase offered crypto assets considered “unregistered securities.”
In June 2023, the SEC stated that “Since at least 2019, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities.”
The regulator asserted that this deprived people buying and selling those financial products of vital safeguards.
The lawsuit was part of a broader crackdown on cryptocurrency firms.
Armstrong also praised the role of “crypto voters” in supporting pro-crypto candidates.
He further criticized former SEC chair Gary Gensler, whose leadership oversaw tougher enforcement actions against crypto exchanges.
Paul Grewal, Coinbase’s chief legal officer, also commented on X, stating that “there will be no settlement or compromise– a wrong will simply be made right.”
He added, “We won’t stop fighting until we have the clear rules needed to enable the industry to truly thrive in the United States.” echoing Armstrong’s call for legislation to help the cryptocurrency sector.
He looks forward to working with Congress and SEC staff.
