EddieJayonCrypto
28 Feb 25
The Securities and Exchange Commission has voluntarily dismissed its lawsuit against crypto exchange Coinbase, stating that it will facilitate ongoing efforts to reform its regulatory approach to the crypto industry. This marks the first public explanation for ending lawsuits and investigations into...
The Securities and Exchange Commission has voluntarily dismissed its lawsuit against crypto exchange Coinbase, signaling a shift in regulatory approach to the crypto industry. The decision aims to facilitate ongoing efforts to reform the regulatory approach to the crypto industry. This marks the first public explanation for ending lawsuits and investigations into major players in the crypto industry. While this development is welcomed by Coinbase and other firms, legal experts suggest that the crypto industry may still face regulatory scrutiny despite the dismissal of these lawsuits. The abrupt change in the SEC's crypto policy is evident from the attorney who previously led the charge against Coinbase now signing the stipulation to dismiss the lawsuit. The SEC's decision to exercise its discretion and dismiss the pending enforcement action rests on facilitating ongoing efforts to reform and renew its regulatory approach to the crypto industry, not on any assessment of the merits of the claims alleged in the action. This marks the first public commentary from the agency detailing why it has opted, over the last two weeks, to end lawsuits and investigations into major players in the crypto industry. It appears that the SEC's new leadership has decided to wipe the slate clean and start fresh with its assessment of how crypto companies and projects should best comply with existing securities laws. While this is a welcome development for Coinbase and other firms that have spent significant resources fighting the SEC in court, it does not necessarily mean that the crypto industry is suddenly off the hook for good. Legal experts suggest that many tokens may still ultimately be labeled securities by the SEC's new leadership, even if secondary marketplaces and exchanges like Coinbase appear to be in the clear for now. The SEC's change in crypto policy is starkly evident from the fact that the attorney who led the charge against Coinbase for years has now signed the stipulation to dismiss the lawsuit. This abrupt change highlights the significant shift in the SEC's approach to the crypto industry. This story was updated after publication with additional details.