US SEC files to drop lawsuit against Coinbase

The regulator sued Coinbase back in 2023, reporting that the cryptocurrency exchange broke its regulatory requirements and supported trading in a minimum of 13 crypto tokens that should have been registered as securities. At that time, the SEC charged Coinbase with operating as a broker, exchange, and clearing agency for investments without properly registering. These services were subject to SEC rules, but, as Coinbase failed to register, the regulator mentioned that the company managed to evade oversight, including checks against conflicts of interest.

Now, Coinbase reasoned that crypto assets, compared to stocks and bonds, do not fall in line with the definition of an investment contract, a position held by the large majority of the crypto industry. Additionally, the regulator’s case focused on Coinbase’s staking programme, in which the company includes assets to verify activity on blockchain networks and takes commissions in exchange for rewards to customers. The SEC underlined that the programme should have been registered with the regulator.

The US’s crypto shift

Even before the entrance of Paul Atkins, Trump’s crypto-friendly selection for the SEC chair, republican officials at the agency began to overhaul crypto policies. They focused on revisiting cases against crypto companies, specifically those which violated the SEC’s regulations but were not reported to have defrauded investors. However, according to legal experts cited by Reuters, the SEC is expected to pursue settlements, and any efforts to dismiss all pending matters would be considered unprecedented.

Moreover, back in January 2025, the US SEC launched a crypto task force intended to develop a comprehensive regulatory framework for digital assets. The task force aimed to bring expertise from across the SEC and engage with both Commission staff and the public to address regulatory uncertainty regarding crypto assets. Additionally, the organisation was set to prioritise defining clear regulatory boundaries, creating practical pathways for entities aiming for registration, and designing disclosure frameworks customised to crypto markets. Also, it planned to centre on efficient allocation of enforcement resources.