Brian Armstrong says Coinbase spent $50M fighting SEC lawsuit – and beat it

Core Viewpoint - The SEC has agreed to drop its lawsuit against Coinbase with prejudice, indicating a shift in regulatory stance towards cryptocurrency under the Trump administration compared to the previous leadership of Gary Gensler [1]. Group 1: Lawsuit Details - The SEC's lawsuit, initiated in 2023, claimed that crypto assets were securities and accused Coinbase of operating as an unregistered national securities exchange, broker, and clearing agency [2]. - Coinbase contended that the SEC had not established clear rules regarding cryptocurrency, which undermined the basis for the lawsuit [2]. Group 2: Financial Implications - Coinbase CEO Brian Armstrong noted that defending against the SEC lawsuit cost the company $50 million, which included only external legal fees and not employee time [4]. - Armstrong's comments reflect the financial burden of litigation, confirming earlier warnings about the high costs associated with engaging in legal battles with the SEC [3][4]. Group 3: Future Outlook - Despite the legal victory, Armstrong emphasized the necessity for the US to pass legislation for cryptocurrency to ensure favorable regulations and maintain competitiveness with other nations [5].