Coinbase CEO Brian Armstrong Announces Victory in SEC Legal Battle
Shares of Coinbase (NASDAQ:COIN) climbed 2.4% in early Friday trading after CEO Brian Armstrong revealed that the Securities and Exchange Commission (SEC) had agreed to fully dismiss its lawsuit against the crypto exchange.
According to Armstrong, the SEC’s decision, expected to be formally announced next week, will result in a complete dismissal with zero fines or business changes for Coinbase.
“This is hugely vindicating, especially because many people questioned my decision to engage in litigation with the SEC on this matter in 2023,” Armstrong stated in a post on X (formerly Twitter).
Background: Coinbase’s Legal Battle with the SEC
The SEC sued Coinbase in 2023, alleging that the company was operating as an unregistered securities broker. Under the Biden administration, the SEC maintained that most crypto tokens qualify as securities, a position that Coinbase has repeatedly challenged, asserting that crypto assets function more like commodities.
Armstrong credited the Trump administration’s election victory and the departure of SEC Chair Gary Gensler for influencing the lawsuit’s dismissal. He also criticized the case for wasting taxpayer money and causing irreparable harm to the U.S. crypto industry.
What’s Next for Coinbase and the SEC?
Despite the legal battle, Armstrong emphasized that Coinbase plans to continue working productively with the SEC and other regulatory agencies worldwide. The dismissal of the lawsuit marks a pivotal moment for the crypto exchange as it continues its expansion and regulatory engagement.
With Coinbase stock gaining traction, investors are closely watching how the company leverages this legal win to strengthen its position in the digital asset market.
