The US Securities and Exchange Commission has dismissed its lawsuit with crypto exchange Coinbase on Feb. 27, filings show, ending the case permanently.
The SEC agreed to voluntarily dismiss all litigation tied to Coinbase and Coinbase Global with prejudice, which included withdrawing from its initial June 2023 lawsuit and its request for an interlocutory appeal with the US Court of Appeals, a Feb. 27 court filing shows.
It comes after the two parties announced an agreement to end the legal dispute on Feb. 21.
Source: Inner City Press
The SEC said that “the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry.”
Under the former Gary Gensler-led commission, the SEC adopted a strict regulation-by-enforcement approach to crypto, which saw Coinbase and other industry heavyweights hit with unexpected lawsuits.
“It’s time for the Commission to rectify its approach and develop crypto policy in a more transparent manner,” said the SEC’s acting chair, Mark Uyeda.
One day after US President Donald Trump was inaugurated on Jan. 20, the SEC established a Crypto Task Force led by SEC commissioner Hester Peirce to support this new approach.
The SEC’s decision to drop Coinbase’s lawsuit follows earlier ones from Consensys, Robinhood, Gemini, Uniswap and OpenSea over the last week.
Related: SEC, Justin Sun asks judge to stay case to explore resolution
Coinbase was sued by the SEC in June 2023 which alleged that Coinbase was never registered as a broker, national securities exchange, or clearing agency, while also alleging the crypto platform evaded disclosure requirements.
The SEC alleged that Coinbase listed over a dozen crypto tokens it deemed to be securities, including Solana (SOL), Cardano (ADA), Polygon (POL) and Filecoin (FIL).
Coinbase, led by its chief legal officer Paul Grewal, had strongly opposed the lawsuit from the onset, characterizing it as a regulatory overreach while also slamming the commission for filing a suit after approving the company’s public listing on the Nasdaq stock exchange in April 2021.
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