SEC Poured to Drop Coinbase Lawsuit, Marking Big Moment for US Crypto

WHILE THE SEC HAS BEEN MAKING MOVES ALMOST Daily to Reverse Past Positions on Digital Assets, The PENDING VETE Wuld be Mark a watershed moment that Could Cold Start a Series of Legal. from Enforcement Action. Because the Deal Between Coinbase and Sec Staff Assumes a Dismissal of the Case “with Prejudice,” Said Coinbase Chief Legal Officeer Paul Grewal, The Regulator’s Acusations of Permanently.

“IT’s A Great Day for Coinbase, Yes, But It’s Also A Great Day for Crypto in America,” Grewal Said in An Interview with Coindesk. “We have every expection, Based on Representations that have been Made to Us, that that Approval Will Come, and with That, The Dismissal Will Then Be Filad.”

HE RESTATED IT IN SIMPLER TERMS: “We WIN; they lose.”

And Coinbase Ceo Brian Armstrong Sayid in a Video Posted on Friday that “This is an Important Signal About WHERE Things Are Going.”

WHEN THE SEC FIRST WENT COINBASE-The MOST PROMINENT OF THE US-BASED CRYPTO PLATFORMS-IT REPRPRESENTSENTED A SHOT Across The Bow of the Industry. The Sec Alleged Coinbase Violated Federal Law by Not Registering as A Clearing House, Broker or Trading Venue, Based on the Agency’s View of the So-Called Howey Test The Company Chose to Fight the Acusations in Federal Court, and that Legal Clash Had Been Fierce, Most Recently Seeing A Judge Side with Coinbase’s Effort to Eleveate and Appeal of the Centra. Tokens Being Traded Really Securities Under The Sec’s Jurisdification?

The Industry Had Long Expectioned It Might Have to Wait for the Courts – Eventual Even the US Supreme Court – To Rule On Former Sec Chair Gary Genser Securities. But The Surrender of the Sec in this Dispute Is Likely to Be echoed in Other Cases, WHICH Wuld Put the Final Word on the Legal Definition Into the Hands of Congress.

SO, The Commission Vote Could Throw the Industry’s Major Focus Toward Lobbying Institute of Legal Wrangling.

The Enforcement Meetings for the Sec – Currently Made Up of Acting Chairman Mark Uyeda, Republican Commissioner Hester Peirce and Democrat Commission. On the Staff Recommendation May Be Delayed As Long as A Week. Crenshaw has been a vocal skeptic of the digital assets Industry and it compliance, so it Remains Unclear WHETher She’d Be Willing to Sign Off on the Dismissal.

An Sec Spokesman Decklined to Comment on the Agreement Reveed by Coinbase.

Sec AlliesUyeda and Peirce, Who Was Named The Head of the Agency’s New Crypto Task Force, Had Long Been Sympathetic to the Digital Assets Industry’s Contention It Was Once Donald Trump Was Sworn in As President, He Gave the Agency’s Gave to Uyeda on An Interim Basis, and Uyeda Began Making Swift Moves to Shift Its Course on Crypto. This is the Latest and – Assuming A Yes vote – Arguable the most significant of the Changes so far.

Eventualally, Former Commission Paul Atkins Will Take Over After HE Secures A Senate Confirmation. But Uyeda and Peirce Both Served Atkins as Counsels Durying His Tenure at the Sec, SO atkins is Generally Expert To Follow The Same Path on Crypto.

Earlier this Week, The Agency Shifted ITS Enforcement Unit-once Laser-Focused on Crypto-to a wider reSponsability over “Emerging Technologies Crypto Cases. IT ALSO DROPED ITS APPAL IN THE FIGHT TO DEFER ITS EFFORT TO FORCE A Wide Swath of Crypto Activity Into Its Recent Rule to Expand the Definition of What Makes ACESE “UNDER” UNDER OPER OPER OR.

In Another Marquee Crypto Case, The Regulator Recently Asked to Hit Pause on the Binance Enforcement Dispute. Those Acusations of Securities-law violations overlaped to some Degree with the complaint against coinbase, Thought the binance suits also included acusations of frauds.

The SEC HAD SIMILARLY SIGNALED LAST WEETING WAS BREWING WITH COINBASE WHEN IT Asked for a Delay in Court Proceedings, Suggesting Negotiancy. Crypto Task Force Wuld Help The Enforcement Team Come Up with A “Potential Resolution.”

“The Sec’s Unilateral Surrender in Its Lawsuit Against Coinbase is a Historic Mistake that Endangers Investors, Markets, and Financial Stability,” SAID DENNIS KELLEHER, CEO. Advocal Group that Regularly Speaks Out About Crypto Dangers. “The Sec Used to Enforce The Law Without Fear or Favor But Is Now Favoring the Crypto Industry and Fenering Billionaire Crypto Kingpins Who Are Publicly Belitling The Agency.

The voteIn the coming days, Lawyers Across the Industry Will Will the Sec’s Coinbase Vote, and then the Judge’s Respons in the Us District Court for the Southern District of New York. If the Sec Formally Backs Off the Acusations Coinbase Improperly Listed Unregistered Securities, It’ll Have to DO SAME IN Any Similar Cases.

“I’M Hopeful That Our Getting This Case Dismissed Will Offer Up A Template for Other Cases to Be Resolved As Well,” Grew Said. “And if that were the caase, we’d be delighted, because we felt that Gary Gary Gensler’s Entire Campaign Against Crypto Was A Distory – Frankly, An abuse – of Legal.”

As the agency Continues to Resolve Past Actions, It’s Signulated That Future Intenation Is To Focus on Fraud Over Compliance Disagreements. And Uyeda SAID AS RECENTLY AS THRSDAY THAT The Sec’s New Task Force Will Be Guiding ITS Enforcement.

“One Focus of this Task Force Will Be to Enseure That We Deploy Enforcement Resources Judiciously,” He Said at An Event in Washington.

GREWAL ACKNOWLEDGED THE NEXT PRIORITY QUICKLY BECOMES US LEGISTION THAT CAN ESTABLISH CLEAR REGULATIONS at the Federal Level. To that end, Coinbase have been the Among the Leading Crypto Companies Delving Into the Political Arena, Deploying Tens of Millions of Dollars in the 2024 Elections Congress. One in 10 members of this congresses were boosted by Fairshake ads in their Campaigns Last Year.

“We’ve Seen Congress Annune ITS Commitment to Legislation As Early As The First 100 Days,” Grewal Noted. “SO We’re Very Eager, with this Cloud Now Lifted, to Focus Our Full Attration on Getting Legislation Passed on Market Structure and Stablecoins.

Update (February 21, 2025, 13:11 UTC): Adds Request to Sec for Comment.

Update (February 21, 2025, 15:06 UTC): Adds Respons from the Sec.

Update (February 21, 2025, 15:51 UTC): Adds Comment from Dennis Kelleher, CEO OF BETTER Markets.

Update (February 21, 2025, 15:55 UTC): Adds Quote and Link to CEO Brian Armstrong’s Video.