Coinbase’s Lawsuit Dismissal Expected by End of February

The United States SEC is expected to dismiss Coinbase’s lawsuit pending approval. Analysts suggest this would signify a regulatory shift from previous enforcement actions.

Coinbase CEO Brian Armstrong anticipates approval by next week:

> “Once approved by the Commission (which we’re told to expect next week), this would be a full dismissal, with $0 in fines paid and zero changes to our business.”

Armstrong criticized the former SEC regime under Gary Gensler, stating that their tactics threatened the U.S. crypto industry.

> “The SEC made it clear to us that the only way to avoid litigation was to delist the many assets they falsely claimed were securities. It was a bullying tactic, pure and simple, driven by Gensler’s own political agenda.”

New Pro-Crypto SEC

Coinbase’s ongoing lawsuit stems from claims of offering unregistered securities, including tokens like Solana, Cardano, and Polygon. Coinbase argued these tokens didn’t meet the SEC’s security criteria.

The recognition of Coinbase’s stance may indicate a broader regulatory change, aligning with the pro-crypto positions of the Trump administration.

The SEC has formed a Crypto Task Force spearheaded by Commissioner Hester Pierce to clarify regulations in the crypto space. Dismissing the Coinbase lawsuit could be a precursor to dropping similar lawsuits against other entities like Ripple.

Attorney Jeremy Hogan mentioned that Ripple’s lawsuit might also soon be dismissed.

Digital VC partner Hasseb Qureshi called the situation “historic,” crediting the SEC’s acting leadership for restoring balance in the industry:

> “Absolutely historic day. The siege against crypto has ended. Now it’s our turn to show the world what crypto can do once it’s unshackled.”

Coinbase’s legal chief Paul Grewal stated:

> “Now the U.S can finally get back to doing what it does best: building innovative tech that improves the world.”