Coinbase Says SEC Will Dismiss Lawsuit Against Company Next Week

Core Viewpoint - Coinbase has reached an agreement in principle with SEC staff to dismiss the enforcement case against the company, pending commissioner approval, marking a significant development in the ongoing legal conflict between the two parties [1][3]. Group 1: Legal Proceedings - The SEC initially sued Coinbase in June 2023, alleging violations of securities laws related to the company's business model, which was said to combine functions of an exchange, broker, and clearing agency without proper registration [3][4]. - Coinbase's Chief Legal Officer stated that the dismissal of the case is a victory for the company, its customers, and individual freedom, emphasizing that the case should never have been filed [2][5]. - The SEC's review of Coinbase's business model allowed the company to go public in April 2021, but the agency later pursued legal action despite no changes in the business model, attributing the shift to changes in political leadership at the SEC [5]. Group 2: Industry Implications - The dismissal of the case is viewed as a win for the entire cryptocurrency industry and for Americans who own digital assets, highlighting the need for legislation to support innovation in the sector [5]. - Coinbase's CEO expressed optimism about the expected commission approval for the dismissal, indicating that the resolution would result in no fines or changes to the company's operations [3].