Coinbase Inc. COIN CEO Brian Armstrong announced that the Securities and Exchange Commission has decided to fully withdraw its enforcement case against the company.

What Happened: Speaking to CNBC on Friday, Armstrong described the lawsuit as an unjustified attack on the cryptocurrency industry and said the SEC had no legal basis for its claims.

“This is a huge day for us and also for the 50 million Americans who hold crypto,” Armstrong said. “This case was bogus, and we were right on the facts. If we hadn't stood up for our customers' rights, it could have been the end of the crypto industry in America.”

The SEC sued Coinbase in 2023, accusing it of operating as an unregistered securities exchange, broker, and clearing agency. The regulator also alleged that Coinbase's staking-as-a-service program violated securities laws.

Armstrong pushed back, arguing that Coinbase had already disclosed its business model when it went public and that the SEC had approved its operations at the time.

“They asked us a million questions. They knew exactly what our listing process was and how we took a very conservative approach,” Armstrong said. “Then a few years later, the political climate changed, and they suddenly changed their mind. But that's not how it works.”

Armstrong said the SEC decided to drop the case after realizing it had weak legal standing.

He credited the new administration and SEC officials, including Commissioners Mark Uyeda and Hester Peirce, for working to correct what he described as past overreach.

“I have to give a lot of credit actually to this new administration that's come in,” Armstrong said. “I hope that they'll dismiss all the bogus cases, and it'll be a domino effect for the rest of the industry.”

Also Read: XRP Rallies 5% On ETF News: What Is Going On?

What’s Next: The SEC commissioners are expected to vote on the case's formal dismissal next week, following a recommendation from the agency's staff.

Armstrong emphasized that Coinbase will not pay any fines or admit wrongdoing, calling the withdrawal “unprecedented in SEC history.”

The legal battle came at a significant cost for Coinbase.

Armstrong disclosed that the company spent over $50 million in external legal fees, not including internal expenses.

With the case nearing its conclusion, Armstrong called for clearer crypto regulations from Congress. He outlined three key priorities:

1. Stablecoin legislation to support a digital dollar and maintain the US dollar's reserve currency status.
2. A clear regulatory framework to classify crypto assets as commodities, securities, or payment tokens.
3. A strategic Bitcoin reserve to position the US for long-term financial security.

With the SEC shifting its stance on crypto enforcement, Armstrong sees this decision as a turning point for regulatory clarity in the US.

He hopes it will set a precedent for how the government approaches the broader digital asset industry.

Read Next:

• XRP Up 297% Against Bitcoin Since Donald Trump Won The Election: Here’s Why

Image: Shutterstock