Popular crypto exchange Coinbase has secured a major win as the United States Securities Exchange Commission (SEC) agreed to drop its lawsuit against the platform, according to a Friday blog post by Coinbase Chief Legal Officer Paul Grewal.

“SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval – righting a major wrong.”

According to the post, the SEC staff has agreed in principle to dismiss the case, subject to approval from the Commissioners. The decision marks a major win for Coinbase, as the company had consistently argued that the lawsuit lacked merit.

Grewal added, “We’ve always maintained that we were right on the facts and the law, and today’s announcement confirms that this case should never have been filed in the first place. This is a victory not just for Coinbase, but for our customers, the United States, and individual freedom.”

US SEC vs Coinbase

In June 2023, the SEC filed a lawsuit against Coinbase alleging that the crypto exchange was operating as an unregistered securities exchange, broker, and clearing agency. The SEC also claimed that Coinbase’s staking-as-a-service program was an unregistered securities offering.

However, like their claim in the recent blog post, Coinbase maintained that it was right on the facts and the law, and the recent dismissal of the case seems to support its stance.

According to Grewal, the SEC’s recent move is a significant victory not only for Coinbase alone but also for the broader crypto industry in the US.

What’s Next for Crypto Regulation?

While applauding the SEC’s latest step, Grewal stressed that there is a need for additional reforms to propel the U.S. toward a crypto-driven future, where digital assets play a dominant role in global commerce.

He concluded, “We look forward to working with the SEC staff who stand ready to implement real change. In the meantime, Coinbase will never stop fighting for what’s right. Let’s keep building.”

With a new head at the helm, the SEC may adopt a more accommodating stance toward crypto. In a recent development, the SEC under the acting chairmanship of Mark Uyeda, announced the formation of a specialized crypto task force, dubbed ‘SEC Crypto 2.0,’.

According to Uyeda, who pledged a more crypto-friendly environment, the team will work on establishing a comprehensive and transparent regulatory framework for cryptocurrencies.