Key takeout
The SEC could stop a major lawsuit against Coinbase. This could be a huge victory for the crypto industry. Dismissing the case could shift the focus from a legal battle to establishing crypto standards.
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SEC staff have agreed in principle to deny the enforcement lawsuit against Coinbase, pending the commissioner’s approval shared by Coinbase in Friday’s blog post. Once the SEC committee approves the staff’s recommendation to dismiss the case, the case reaches a final resolution.
The committee, which now includes acting Chair Mark Weda, Commissioner Hester Perth and the Caroline Crenshaw Committee, will decide whether or not to accept the deal negotiated by staff. The executive meeting usually takes place on Thursdays, but there is no date for this particular vote. The final decision can take up to a week.
Dismissal is “biased,” meaning that the SEC can no longer bring the same accusation against Coinbase again. If the SEC drops this case, it could affect other similar cases for crypto exchanges. The SEC vs. Coinbase case sets precedents and could lead to layoffs as well.
The SEC sued the Wilmington-based company in June 2023. Shortly after targeting one of its biggest competitors, Binance, with another enforcement action. Coinbase has been accused of operating an unregistered stock exchange and acting as an unregistered broker and clearing agency.
The SEC also insisted it Staking as a Service The program constitutes unregistered securities offerings. The complaint alleged that Coinbase facilitated transactions of at least 13 crypto tokens considered by the SEC Something securities.
Throughout legal proceedings, Coinbase has consistently denied SEC claims and has advocated clearer regulatory guidelines for the crypto industry.
The latest development follows the SEC’s recent request for a 28-day extension to prepare a response to Coinbase’s appeal amid the ongoing legal battle over the classification of digital assets. Under the guidance of Acting Chair Aeda, the securities agency has already made several changes, including the formation of a Cryptocratic Task Force of the SEC that could play a role in resolving the lawsuit against Coinbase.
Returning to building innovative technology: Coinbase’s Chief Law Officer
“Today, we can announce with full committee approval that the SEC is removing our case. There are no settlements or compromises. What is wrong is simply done right. “We’re doing that,” Paul Grewal, the company’s chief legal officer, said in a recent statement.
The agency has recently shifted its focus on enforcement, moving its crypto units to monitoring a wider range of “emerging technologies.” It also dropped its appeal regarding the crypto dealer registration rules and called for a suspension of enforcement disputes with Binance.
“Now, the US can finally return to doing its best. We can build innovative technologies that will improve the world,” Grewal said.
A story in development.
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