A lawsuit against Coinbase, the largest U.S. cryptocurrency platform, is being dropped by the Securities and Exchange commission.
According to Reuters, the SEC filed last week to dismiss the suit that was filed in 2023 during the Biden Administration.
In that action, the SEC sued Coinbase for offering unregistered securities, alleging that the company was acting as an unregistered broker and exchange. The suit claimed that Coinbase made billions of dollars since at least 2019 by operating as an intermediary on crypto transactions through its staking program, while evading disclosure requirements meant to protect investors.
The SEC said Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon. The commission had been seeking injunctive relief, disgorgement of ill-gotten gains plus interest, penalties, and other equitable relief.
Last Friday Coinbase had posted a claim that the case was dismissed pending approval from the SEC. Coinbase contended that crypto assets, unlike stocks and bonds, do not meet the definition of an investment contract.
The move to dismiss the case is another sign of a shift in approach by the SEC under the new administration. President Trump has selected cryptocurrency advocate Paul Atkins, the CEO of Patomak Partners and a former SEC commissioner, to head the commission. He called Atkins a “proven leader for common sense regulations.” In the years since leaving the SEC, Atkins has made the case against too much market regulation.
The SEC also recently asked a federal court to pause ongoing litigation against Binance, the world’s largest cryptocurrency exchange, because of its review of previous enforcement actions.
Furthermore, President Trump directed a working group to study and propose changes to crypto regulations as well as the possible formation of a strategic government reserve of cryptocurrencies within 180 days.
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