Coinbase Triumphs: SEC Agrees to Dismiss ‘Bogus’ Enforcement Case Against Crypto Exchange

Coinbase has some good news! On Friday, they announced that the Securities and Exchange Commission (SEC) plans to drop its enforcement case against them, pending approval from the SEC’s commissioners. This news helped Coinbase’s shares rise by 3% in the morning.

The SEC originally charged Coinbase in 2023 for running an unregistered securities exchange and for not properly registering its crypto staking program. These charges came when Gary Gensler was chair of the SEC. However, with a new leadership under President Donald Trump and nominee Paul Atkins, the SEC is expected to take a friendlier approach towards the crypto industry.

Brian Armstrong, Coinbase’s CEO and co-founder, expressed excitement during a recent CNBC appearance. He stated that the company won’t face any fines and described the agreement as a significant moment for both Coinbase and the broader crypto sector. He noted, “It’s an important signal that we can finally get some regulatory clarity in America, turning the page from previous unfair attacks on the industry.”

The SEC has been involved in debates about whether certain cryptocurrencies should be classified as securities. Their stance requires exchanges to register and disclose information about specific crypto assets. In contrast, many in the crypto space are advocating for new rules tailored to digital assets.

Interestingly, Trump has shown strong support for cryptocurrency during his presidential campaign and has engaged with industry leaders. He even signed an executive order on January 23 to create a regulatory working group for crypto, which could lead to more defined rules in the future.

In the aftermath of Trump’s election, the crypto market surged, with Bitcoin surpassing the $100,000 mark for the first time. Other cryptocurrencies, like meme coins, have also gained attention, including a Trump-themed coin that gained traction just before his inauguration.