The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Coinbase, according to a Feb. 27 filing. This move ends the legal battle that began in June 2023. Coinbase had previously announced an agreement to resolve the case on Feb. 21.
The SEC’s filing confirmed that both parties agreed to dismiss the case “with prejudice,” meaning it cannot be refiled. The document also stated that Coinbase and its parent company, Coinbase Global, withdrew their appeal request.
The lawsuit accused Coinbase of operating as an unregistered securities exchange. The exchange denied the claims, arguing that cryptocurrencies are not securities under U.S. law. A key court ruling in March 2024 partially supported Coinbase’s stance, leading to further legal debates.
In Jan. 2025, SEC Acting Chairman Mark Uyeda launched a crypto task force. This group aims to refine the agency’s approach to regulating digital assets. The decision to drop the case aligns with this shift in strategy.
The dismissal does not affect other crypto-related cases the SEC is handling. It also does not indicate a change in the agency’s broader enforcement efforts.
Coinbase sees this as a positive step
Coinbase welcomed the resolution. The exchange has long advocated for clear crypto regulations. With this lawsuit behind it, the company may focus on expanding its services and pushing for industry-friendly policies.
This legal battle was closely watched by the crypto industry. Many saw it as a test of how U.S. regulators classify digital assets. The outcome may influence future cases and legislative efforts.
Despite this victory, regulatory uncertainty remains. The SEC continues to scrutinize crypto firms, and legal challenges persist. However, the dismissal marks a significant moment in Coinbase’s legal history.
