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The U.S. Securities and Exchange Commission (SEC) has agreed to drop the lawsuit against Coinbase, the company has said in a press release titled ‘righting a major wrong.’
The suit was originally filed under the Biden administration, but now Coinbase has today (February 21) said that “SEC staff” have “agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval – righting a major wrong.”
Paul Grewal, an attorney working as chief legal officer at the company, is the name behind the blog update which describes the move as being “a victory not just for Coinbase, but for our customers, the United States, and individual freedom.”
“We look forward to working with the SEC staff who stand ready to implement real change,” says Coinbase legal officer
The SEC must still vote to formally drop the lawsuit before it can be made official, but the news could indicate a major shift in approaches under the Trump administration for the cryptocurrency industry.
Previously, and during the campaign run, President Donald Trump promised numerous times to make the United States the ‘crypto capital of the world.’
Great news!
After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase. Once approved by the Commission (which we're told to expect next week)… pic.twitter.com/IlnoBs7N6n
— Brian Armstrong (@brian_armstrong) February 21, 2025
“Coinbase went public in April 2021. As part of that process, the SEC reviewed our business model and S1 disclosures and allowed us to go public. Two years later, they sued us. That’s despite absolutely nothing changing in our business model,” said Grewal.
He went on to say what changed over those two years was the political leadership at the SEC.
“In its war against crypto it acted as if it was above the law, usurping the power of Congress as set forth in the Constitution.
“And after millions in legal costs and fees, countless employee hours, and years of protracted litigation, we have successfully protected our customers’ rights, and held the SEC accountable.
“While dismissal will be a major win for the rule of law – and a clear vindication of our position – most of all it will be a win for the entire industry and the 52 million Americans who have owned a digital asset.”
Featured image: credit to Coinbase blog
