The U.S. Securities and Exchange Commission has agreed in principle to dismiss its lawsuit against Coinbase. The crypto exchange announced the development on Friday, calling it a significant victory for the industry.
Coinbase’s Chief Legal Officer, Paul Grewal, confirmed the news in a blog post. He stated that the SEC’s enforcement action was unlawful from the start. The decision to drop the case, pending Commissioner approval, corrects a major regulatory overreach, he said.
Coinbase has maintained that its business operates within the law. The company went public in 2021 after an SEC review. Two years later, the agency sued Coinbase despite no changes in its business model. The lawsuit became a focal point in the debate over regulatory clarity in the crypto space.
Grewal blamed shifting political leadership at the SEC for the lawsuit. He said the agency tried to act above the law and bypass Congress in its fight against crypto. Coinbase fought back, spending millions in legal fees and years in litigation.
He further emphasized that innovation in the crypto space must continue without regulatory uncertainty. The dismissal would mark a step toward preventing future legal battles driven by unclear rules.
Coinbase pushes for U.S. crypto leadership
The exchange called for legislation to establish a clear regulatory framework. According to Coinbase, passing laws would prevent regulatory agencies from taking arbitrary action. Grewal argued that clear rules would bring more capital into the U.S. and modernize the financial system.
Coinbase also stated its long-term vision for crypto adoption. The company believes digital assets will play a key role in global economic infrastructure. It urged the U.S. government to embrace the technology rather than fall behind other nations.
The decision to dismiss the case highlights the ongoing tensions between regulators and the crypto industry. It also reinforces calls for clearer regulations that support growth while ensuring compliance.
