In a significant move for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has announced plans to fully drop its lawsuit against Coinbase next week. This development was shared by Coinbase CEO Brian Armstrong in a recent post on X, suggesting that the appeal will soon be irrelevant. The lawsuit, which was initially filed under former President Joe Biden's administration, accused Coinbase of operating as an illegal securities exchange. Coinbase has consistently defended its business practices, asserting that it does not function as a securities company.
The decision to drop the case represents a pivotal moment in the handling of cryptocurrency enforcement under the current government. The Trump administration, which has been more favorable towards the growth and regulation of cryptocurrency, is seen as playing a key role in this shift. President Donald J. Trump had previously promised to transform the United States into a crypto capital, and the dismissal of the case against Coinbase aligns with that vision.
The original lawsuit was filed two years ago during the Biden administration. The SEC, led by then-Chair Gary Gensler, pursued numerous landmark cases against the cryptocurrency industry, including actions against companies like Binance, eToro, Ripple Labs, and NFT platforms such as OpenSea. However, under Trump's leadership, there has been a notable change in approach. Trump dismissed Gensler, alleging that he was unfairly targeting the crypto industry.
The scrutiny over the past years has been a significant challenge for proponents of decentralized currency. The decision to drop the lawsuit against Coinbase signals a potential easing of regulatory pressures on the industry. This change of heart by the SEC is seen as favorable for blockchain technology and the broader cryptocurrency market.
