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The U.S. SEC is close to ending its landmark case against Coinbase amid a 180-degree turn in the commission’s crypto regulatory approach.

Coinbase announced that the Securities and Exchange Commission will file to dismiss a federal lawsuit against the U.S.-based crypto exchange for allegedly violating securities rules.

In 2023, the SEC accused Coinbase of operating an unregistered securities exchange and offering unregistered securities. The case against Coinbase was one of the commission’s biggest crypto-related enforcement actions under former chair Gary Gensler.

“There will be no settlement or compromise – a wrong will simply be made right,” wrote Paul Grewal, Coinbase’s chief legal officer. 

The crypto exchange vehemently refuted all allegations from the SEC throughout the case, even launching a countersuit to compel clear rulemaking from the federal regulator. A U.S. court also criticized the regulator’s crypto conduct and its refusal to dispel confusion about the rules.

CEO Brian Armstrong said the decision is subject to approval by the agency’s leadership, led by interim chair Mark Uyeda. Armstrong expects confirmation by next week, as he shared on X.com.

Dismissing the lawsuit against Coinbase signals a marked shift in the SEC’s approach under President Joe Biden compared to its stance during President Donald Trump’s administration. It is the first major crypto enforcement action likely to be withdrawn since President Trump took office and Chair Uyeda launched a task force.

The SEC has also paused court proceedings in the Binance case, pending a resolution with the newly formed Crypto Task Force.

We’ve always maintained that we were right on the facts and the law, and today’s announcement confirms that this case should never have been filed in the first place. This is a victory not just for Coinbase but for our customers, the United States, and individual freedom.

Coinbase blog post