Coinbase announced on Friday that the U.S. Securities and Exchange Commission (SEC) intends to withdraw its lawsuit against the cryptocurrency exchange, marking the end of a protracted legal battle that had significant implications for both the company and the broader crypto industry. The case was seen as a major test of regulatory oversight in the sector, with potential consequences for the future of digital asset trading in the United States.
Since President Donald Trump took office, the SEC has rapidly shifted its approach to cryptocurrency regulation under Republican leadership. The agency has moved to establish a specialized task force focused on digital assets and has rolled back key accounting guidance that had previously been a point of contention for crypto firms. These changes reflect a broader effort to redefine the regulatory landscape governing digital currencies.
The SEC declined to comment on the decision, but reports indicate that the agency has been reviewing its ongoing litigation strategy. Even before formally updating its regulations, the commission was expected to reconsider pending court cases, potentially reversing actions taken under the previous leadership.
The move to dismiss the lawsuit against Coinbase is among the most significant steps taken under the SEC’s acting Republican leadership. The case was one of several high-profile legal actions initiated by the agency’s previous chair, and its withdrawal signals a major shift in the government’s stance on crypto enforcement.
