Key takeout
- The SEC has rejected civil enforcement action against Coinbase through its joint provisions.
- The SEC's decision is consistent with a shift towards developing a comprehensive regulatory framework for crypto assets.
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The SEC today rejected civil enforcement measures against Coinbase and Coinbase Global through joint provisions, ending the legal battle that began in 2023.
Acting Chairman Mark T. Weda said: The Crypto Task Force is designed to do just that. ”
The original lawsuit alleged that Coinbase operated as an unregistered stock exchange, broker and liquidation agency, promoting cryptocurrency trading without proper registration since 2019.
Inther City Press reported X's dismissal and stated, “The provision of voluntary dismissal is hereby set forth and agreed by the parties and/or their respective attorneys, and voluntarily dismissed that the above cases are voluntarily dismissed and prevented against the defendant.”
Just filed, SEC v. Coinbase: STIPULATION OF VOLUNTARY DISMISSAL It is hereby stated and agreed by and between the parties and/or their respective counsel(s) that the above-captioned action is voluntarily dismissed, with prejudice against the defendant(s) https://t.co/2L5GN5H5V7 pic.twitter.com/jfwqhguwsy
– Innercity Press (@innercitypress) February 27, 2025
The SEC argues that the terminations support broader regulatory reform efforts and do not reflect the merits of the original claims.
Critics like Better Markets have suggested that this could be a “historical mistake” in favor of the crypto industry over strict enforcement.
#SECReported surrender in the lawsuit @coinbase It's a historical mistake. By supporting #crypto In the industry, financial stability is at risk, repeating the mistakes of 2008. The outcome is devastating. https://t.co/kyiw2fk26d
– Better Markets (@bettermarkets) February 21, 2025
The SEC's firing has become a new focus on developing a comprehensive regulatory framework for crypto assets through the Cryptocurrency Task Force established on January 21, 2025.
The SEC's Cyber and Emerging Technology Unit (CETU) will continue to investigate potential fraud, including blockchain technology and crypto assets, according to a recent statement from the agency.
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