Amid the ongoing overhaul of the US crypto policy and one of its key agencies, the US Securities and Exchange Commission (SEC) reportedly intends to dismiss its enforcement case against the Coinbase cryptocurrency exchange. Indeed, the agency has agreed, in principle, to drop the lawsuit, according to a report from the Wall Street Journal.
The decision is now only pending the approval of key commissioners but could signal yet another turn toward embracing the asset class for the Trump administration. Since he was inaugurated in January, the SEC has sought to overhaul its stance regarding the emerging industry.
JUST IN: 🇺🇸 SEC agrees in principle to dismiss enforcement case against Coinbase.
— Watcher.Guru (@WatcherGuru) February 21, 2025
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SEC Agrees to Dismiss Coinbase Lawsuit Pending Final Approvals
The last several years have seen the SEC form a rather combative stance opposing the cryptocurrency sector. Under Gary Gensler, the agency embraced regulation through enforcement. However, that has changed with the arrival of US President Donald Trump. Indeed, the appointment of acting SEC Chair Mark Uyeda has begun an unprecedented transition in crypto policy.
That continued shift took another step forward on Friday. Indeed, the SEC has reportedly agreed in principle to dismiss its enforcement case against cryptocurrency exchange Coinbase. The announcement saw shares of the platform jump 4% in premarket trading.
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The SEC had formerly charged Coinbase with operating an unregistered securities exchange in 2023. Speaking to CNBC, the exchange’s CEO, Brian Armstrong, discussed the “huge day” for the platform and the entire US-based cryptocurrency industry.
“I think it’s a really important signal that, [after] a small group of activists in this prior administration who tried to unlawfully attack this industry, we’re going to be able to turn the page on that and finally get some regulatory clarity in America,” Armstrong said.
“I hope that they’ll dismiss all the bogus cases, frankly. And it will be a domino effect for the rest of the industry,” Armstrong added. Additionally, he told the network that Coinbase would not pay a fine in the impending dismissal.
