The U.S. Securities and Exchange Commission (SEC) plans to withdraw its lawsuit against Coinbase, a major cryptocurrency exchange platform, marking a significant shift in the agency’s regulatory approach.
The decision, confirmed by Coinbase on Friday, follows the SEC’s broader efforts to revise its stance on digital assets under Republican leadership.
The lawsuit, filed in 2023, accused Coinbase of facilitating trading in at least 13 crypto tokens that the SEC considered unregistered securities. It also challenged Coinbase’s staking program, which allows users to pool assets to verify blockchain transactions in exchange for rewards, arguing that it should have been registered with the agency.
The SEC has taken enforcement action against multiple cryptocurrency platforms in recent years, including Binance and Kraken. These lawsuits were initiated under former SEC Chair Gary Gensler, who prioritized aggressive oversight of the digital asset sector.
Under the current administration, the SEC has scaled back its crypto enforcement efforts, renaming its specialized unit to focus on broader cyber and emerging technologies.
Coinbase stated in a blog post that SEC staff had “agreed in principle” to dismiss the case, though the final decision requires a commission vote. The regulator’s new leadership has indicated a shift toward drafting clearer cryptocurrency regulations rather than pursuing litigation.
This policy shift comes as the administration of President Donald Trump moves quickly to revise crypto regulations.
In his first week in office, Trump ordered the formation of a cryptocurrency working group to propose new rules and explore the creation of a national cryptocurrency stockpile. He also issued an executive order ensuring banking services remain accessible to crypto companies, addressing industry concerns over financial access.
The SEC’s withdrawal of the lawsuit against Coinbase represents a major regulatory change for the crypto industry. Other enforcement cases remain under review, with further decisions expected in the coming months.
