Coinbase Global (COIN) said Friday that the US Securities and Exchange Commission agreed in principle to withdraw its enforcement case against the cryptocurrency exchange.

In June 2023, the SEC sued Coinbase for allegedly operating an unregistered crypto asset trading platform. At the time, the regulator accused the company of acting as a broker, an exchange and a clearing agency without registering any of these functions as required by law.

The dismissal of the lawsuit, which was filed in the US District Court for the Southern District of New York, requires approval of the SEC's commissioners, Coinbase said in a regulatory filing.

"Today's announcement confirms that this case should never have been filed in the first place," Coinbase Chief Legal Officer Paul Grewal said in a blog post. "While dismissal will be a major win for the rule of law -- and a clear vindication of our position -- most of all it will be a win for the entire industry."

The company plans to work with the SEC staff "who stand ready to implement real change," according to Grewal. A spokesperson for the regulator declined to comment on the matter.

Grewal called for crypto legislation to be passed for "long-term certainty."

"Clarity will bring new inflows of capital into the US, update our financial system so consumers pay lower fees, and help create economic freedom for all," Grewal said. "We must enable entrepreneurs, builders, and innovators to update our financial system and bring the world onchain."

Last week, Coinbase reported fourth-quarter earnings of $4.68 per share, jumping from $1.04 a year earlier. Revenue advanced to $2.27 billion from $953.8 million in the prior-year period.