Coinbase announced that the Trump administration will drop a critical lawsuit by the SEC that may have threatened the crypto industry. The SEC alleged Coinbase acted as an unregistered broker, but is expected to dismiss the case without penalties. This decision aligns with a broader push by the new administration to ease cryptocurrency regulations.
Coinbase, the largest cryptocurrency exchange in the United States, announced that the Trump administration has agreed to drop a crucial lawsuit that could have jeopardized the entire crypto industry. This comes as the new administration leans toward deregulation of digital currencies like Bitcoin, promising a brighter future for crypto enthusiasts.
In June 2023, the SEC filed a lawsuit against Coinbase, accusing it of operating as an unregistered broker, a charge also raised against Binance at that time. Both companies have since agreed to pause their legal proceedings as they navigate these turbulent waters.
The SEC alleged that Coinbase illegally profited billions by acting as an exchange, broker, and clearing agency without proper registration. However, Coinbase now anticipates the SEC will dismiss this lawsuit, asserting that no fines or fees will be imposed on the company.
After President Trump’s nomination of Paul Atkins as SEC Chair, a significant shift in crypto regulation is expected, favoring a lighter touch compared to the strictures imposed under the Biden administration. Despite previously labeling cryptocurrency as a scam, Trump has adopted a more supportive stance, signing an executive action on his third day in office to ease regulations.
In a statement on X, Coinbase CEO Brian Armstrong expressed gratitude for the SEC’s decision to drop its lawsuit, emphasizing that the company’s struggle was about safeguarding the broader crypto industry, rather than just their own interests. He warned that succumbing to the SEC’s demands could have decimated the industry within the U.S.
Armstrong reiterated that accepting the SEC’s claims would severely limit permissible crypto assets in America, effectively pushing operations out of the country. While the Biden SEC countered his claims at the time, he stood firm that they had not violated any laws, criticizing the SEC for overstepping its authority.
He concluded with a nod to the new administration, stating, “I have to give credit here to the Trump administration.” This announcement marks a pivotal juncture for the cryptocurrency landscape in the United States, showcasing shifting regulations and a growing acceptance of digital currencies.
The Trump administration’s decision to drop the lawsuit against Coinbase is a significant development for the cryptocurrency industry, providing relief and hope for clearer regulatory practices. Brian Armstrong’s remarks underscore the importance of this legal shift in protecting not only Coinbase but also the broader digital finance realm, steering it toward a more favorable future.
Original Source: www.cnn.com
