Coinbase's Armstrong Declares Victory in SEC Lawsuit as Claims of Dismissal Emerge

In a significant development for the cryptocurrency world, Coinbase’s CEO Brian Armstrong announced that the US Securities and Exchange Commission (SEC) may be preparing to drop its lawsuit against the cryptocurrency exchange. The lawsuit, filed in 2023, accused Coinbase of operating illegally in the US by offering investments considered “unregistered securities” without proper registration. The SEC alleged that since 2019, Coinbase made billions by facilitating the trading of these assets, depriving investors of essential protections.

Armstrong expressed optimism in a post on X, suggesting that an agreement had been reached with SEC staff regarding the dismissal of the lawsuit, which, if confirmed, would not require Coinbase to pay fines or alter its operational practices. The SEC, however, has not publicly confirmed these claims. Armstrong’s post was both celebratory and politically charged, thanking former President Donald Trump for his electoral success and recognizing the influence of “crypto voters” in securing a pro-crypto political landscape.

He criticized former SEC chair Gary Gensler, who spearheaded the enforcement actions against crypto firms prior to his departure, and emphasized the need for clearer regulations to support the industry’s growth in the US. Coinbase’s Chief Legal Officer Paul Grewal reiterated this sentiment, stating there would be no compromise but rather a rectification of the situation, as they aim to work with Congress and the SEC towards more favorable regulations for the cryptocurrency sector.