MW Coinbase claims victory, as Trump helps it win fight against 'rogue' SEC

By Emily Bary

Coinbase's stock is rising on a favorable regulatory development, but the company says the U.S. government has more to do to foster crypto innovation

Coinbase Global Inc. is taking a victory lap on Friday after saying that the Securities and Exchange Commission has agreed to dismiss a suit alleging that the cryptocurrency exchange operated in an unlawful manner.

The development signals how the Trump administration is expected to be friendlier to the cryptocurrency industry than the Biden administration.

The SEC had sued Coinbase $(COIN)$ back in 2023, arguing that the company ran an unregulated securities exchange. At the time, the move was seen as an overhang on Coinbase shares given that legal battles often stretch on for years.

"We've always maintained that we were right on the facts and the law, and today's announcement confirms that this case should never have been filed in the first place," Coinbase said in a blog post. "This is a victory not just for Coinbase, but for our customers, the United States, and individual freedom."

The SEC declined to comment.

Coinbase shares are up 4% in premarket trading Friday.

The company said the SEC had been in a "war against crypto" under the agency's prior "political leadership." Coinbase also said more work is needed beyond dismissal of the case.

"To ensure innovation continues in America and a rogue regulator cannot weaponize the lack of clarity again, it is critical that we pass legislation which provides the long-term certainty needed for the U.S. to lead in this industry," the company said in its blog post.

On X, formerly known as Twitter, Chief Executive Brian Armstrong said the SEC is expected to approve a full dismissal next week, meaning that the company wouldn't have to pay any fines or make any changes to its business.

Armstrong said he wanted to "give credit here to the Trump administration" but also commended "both Democrat and Republican members of Congress, who are working hard to ensure America leads on crypto."

He said the decision is "hugely vindicating, especially because many people questioned my decision to engage in litigation with the SEC on this matter in 2023" given the steep costs and the idea that "public-market investors wouldn't like it."

-Emily Bary

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February 21, 2025 09:03 ET (14:03 GMT)

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