‘It’s time for the Commission to rectify its approach’

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Key Takeaways

The SEC has dismissed its civil enforcement action against Coinbase through a joint stipulation.
The SEC’s decision aligns with a shift towards developing a comprehensive regulatory framework for crypto assets.

The SEC today dismissed its civil enforcement action against Coinbase and Coinbase Global through a joint stipulation, ending a legal battle that began in 2023.

Acting Chairman Mark T. Uyeda stated: “It’s time for the Commission to rectify its approach and develop crypto policy in a more transparent manner. The Crypto Task Force is designed to do just that.”

The original lawsuit alleged that Coinbase operated as an unregistered securities exchange, broker, and clearing agency, facilitating crypto asset securities trading without proper registration since 2019.

Inner City Press reported the dismissal on X, stating: “STIPULATION OF VOLUNTARY DISMISSAL It is hereby stipulated and agreed by and between the parties and/or their respective counsel(s) that the above-captioned action is voluntarily dismissed, with prejudice against the defendant(s).”

Just filed, SEC v. Coinbase: STIPULATION OF VOLUNTARY DISMISSAL It is hereby stipulated and agreed by and between the parties and/or their respective counsel(s) that the above-captioned action is voluntarily dismissed, with prejudice against the defendant(s) pic.twitter.com/jFWQHGuwSy

— Inner City Press (@innercitypress) February 27, 2025

The SEC maintains that the dismissal supports its broader regulatory reform efforts and does not reflect on the original claims’ merits.

Critics like Better Markets suggested that this could be a “historic mistake” that favors the crypto industry over strict enforcement.

#SEC’s reported surrender in the lawsuit against @coinbase is a historic mistake. By favoring the #crypto industry over investors, it risks financial stability and repeats the mistakes of 2008. The consequences will be catastrophic.

— Better Markets (@BetterMarkets) February 21, 2025

The SEC’s dismissal aligns with its new focus on developing a comprehensive regulatory framework for crypto assets through the Crypto Task Force, established as recently as January 21, 2025.

The SEC’s Cyber and Emerging Technologies Unit (CETU) will continue to investigate potential misconduct involving blockchain technology and crypto assets, according to the agency’s recent statement.