Crypto Giant Coinbase Spends $50M to Win SEC Lawsuit, A Stepping Stone for US Crypto Regulation

Friday was a victorious day for Coinbase, as the Securities and Exchange Commission (SEC) agreed to dismiss their lawsuit against the cryptocurrency behemoth with prejudice. This means the lawsuit cannot be filed once again. This decision still needs the nod from the SEC’s Commissioners. The lawsuit initially filed in 2023, had alleged that crypto assets were securities and dubbed Coinbase as an ‘unregistered national securities exchange, broker, and clearing agency.’ This move signals a probable friendly stance towards cryptocurrencies by the Trump administration, contrasting the SEC under the former leader, Gary Gensler.

Armstrong believes that his fight was not merely for Coinbase, but for the crypto industry at large. He finds not many companies in America have the wherewithal to defend themselves as Coinbase did, thus underscoring the need for coherent laws for cryptocurrency in the U.S. While he considers their legal victory as a significant milestone, Armstrong insists the U.S. still needs firm legislation for cryptocurrencies and laments the risk of the U.S. falling behind other nations.