SEC Backs Off: Coinbase Lawsuit Officially Dismissed

In a court filing on February 27, the agency confirmed it would no longer pursue the case, stating the decision was part of an effort to rethink its stance on digital assets.

On February 21, Coinbase revealed that the SEC had agreed to drop the lawsuit, pending final approval from its commissioners.

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The SEC stated, "The Commission’s decision to exercise its discretion and dismiss this pending enforcement action rests on its judgment that the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry, not on any assessment of the merits of the claims alleged in the action".

One striking detail in the filing was the signature of Nicholas Margida, an SEC attorney who had long led the case against Coinbase. Margida had criticized the company, calling it a “multi-billion dollar entity” that disregarded financial laws and misrepresented its actions. His name appearing on the dismissal adds how suddenly the SEC has changed direction.

For Coinbase and other crypto companies, the reversal is a relief. The agency’s decision to step back could open the door for clearer regulations rather than prolonged legal disputes.

Meanwhile, Binance $19.87B and the SEC recently agreed to postpone their legal dispute for 60 days, according to the February 10 joint request. Why? Read the full story.