The SEC has officially dismissed its civil enforcement action against Coinbase and Coinbase Global through a joint stipulation, concluding a legal battle initiated in 2023.
Acting Chairman Mark T. Uyeda remarked, “It’s time for the Commission to adjust its strategy and develop crypto policy with greater transparency. The Crypto Task Force is intended to fulfill that role.”
The initial lawsuit accused Coinbase of functioning as an unregistered securities exchange, broker, and clearing agency, alleging it facilitated the trading of crypto asset securities without proper registration since 2019.
The SEC asserts that the dismissal aligns with its broader efforts for regulatory reform and does not affect the validity of the original claims. However, critics such as Better Markets have suggested this could be a “historic mistake,” prioritizing the crypto industry over rigorous enforcement.
