Coinbase has announced that the Securities and Exchange Commission (SEC) has dismissed its ongoing case against the cryptocurrency exchange, albeit pending approval from the commission itself.
On Friday, shares of Coinbase experienced a 3% increase at the opening of the trading session, despite the SEC not yet confirming this decision. This potential development aligns with a broader expectation of a more favorable regulatory environment for cryptocurrencies under the Trump administration.
As of now, the SEC has chosen not to comment on the matter.
The cryptocurrency sector has made significant financial contributions to the electoral campaigns of Trump and other lawmakers who favor crypto, aiming to strengthen its presence in both political and financial spheres.
Back in June 2023, Coinbase found itself in the crosshairs of U.S. regulatory authorities when the SEC filed a lawsuit, accusing the company of functioning as an unregistered securities platform and brokerage.
According to the SEC, Coinbase generated substantial profits by acting as an intermediary for cryptocurrency transactions but failed to provide the necessary investor protections typically required of brokers.
The commission sought various forms of relief including injunctive measures, the return of profits deemed ill-gotten, financial penalties, and additional equitable remedies.
On Friday, Coinbase shared a post on the social media platform X, announcing the dismissal of the case pending SEC approval.
The post emphasized, “But this isn’t the end. It’s the beginning. And if there were ever a time to build—that time is now. Thank you to everyone who stood with us, and stood with crypto.”
Since Trump’s presidency began, the crypto industry has celebrated several successes, including the repeal of a controversial accounting rule by the SEC and an executive order that initiated a working group to explore potential adjustments to cryptocurrency regulations. There is also a proposal for establishing a strategic government reserve of cryptocurrencies slated for consideration within 180 days.
In a related move, the SEC has requested a federal court to suspend ongoing lawsuits against Binance, the largest cryptocurrency exchange globally, indicating that its leadership is reconsidering previous enforcement strategies.
