Coinbase Wins Major Legal Battle as SEC Drops Case

Coinbase has secured a major victory as the U.S. Securities and Exchange Commission (SEC) officially dismissed its lawsuit against the crypto exchange. The move, following a formal vote by SEC commissioners, prevents the regulator from reopening the case later.

While this marks a significant win for Coinbase, the company still faces legal matters, including its push for regulatory clarity and access to internal SEC documents on crypto policy. The case was central to industry concerns over whether crypto assets qualify as securities and how exchanges should register with regulators—issues now left to Congress.

The shift comes as SEC Acting Chair Mark Uyeda, appointed after Gary Gensler’s departure, pivots the agency’s approach to digital assets. Uyeda has assigned crypto-friendly Commissioner Hester Peirce to lead the SEC’s crypto task force, aligning with a broader trend of dropped crypto cases, including actions against Robinhood, Gemini, and ConsenSys’s MetaMask. The SEC is also reconsidering its application of the Howey test, which previously classified many cryptocurrencies as securities.

Coinbase’s Chief Legal Officer Paul Grewal celebrated the decision with a blunt message on social media: "Goodbye, and good riddance." With regulatory pressure easing, Coinbase is shifting its focus to lobbying efforts in Congress. The company has been instrumental in the Fairshake PAC, which has invested over $160 million to support crypto-friendly lawmakers in the 2024 elections.

As regulatory uncertainty lingers, the outcome signals a broader shift in U.S. crypto policy, raising hopes for a more transparent framework.