A Watershed Moment for Crypto Regulation – CryptoNinjas

Key Takeaways:

• Pending final approval, the SEC has agreed to dismiss its lawsuit against Coinbase.
• This is indicative of a potential change in the US toward a more crypto-friendly regulation.
• Coinbase CEO Brian Armstrong heralds this as a boon for the industry and a sign things are getting better.

The United States Securities and Exchange Commission (SEC) has reportedly agreed to dismiss its lawsuit against Coinbase, a major cryptocurrency exchange. The lawsuit alleged that Coinbase had operated as an unregistered securities broker, a charge that the company has vigorously rejected.

The SEC’s Shift in Stance

The possible settlement also represents a dramatic shift for the SEC, which until recently had taken an aggressive posture on enforcement. Gensler’s SEC had aggressively pursued enforcement actions against a range of crypto firms, often claiming that they were unregistered securities brokers or that the crypto assets themselves were unregistered securities. This combative stance put a ton of regulatory and financial pressure on the whole crypto industry.

The case was brought during Gensler’s tenure, but he has since left the agency, and the political winds are shifting, as Jesse Pound noted. The regulatory landscape has undoubtedly shifted, thanks to Donald Trump — whom critics say has pandered to the crypto crowd as president by attending the 2024 Bitcoin Conference and accepting financial donations from industry titans. In fact, on January 23, 2025, Trump signed an executive order creating a working group with a mandate to create a regulatory framework for the crypto market.

Coinbase’s Reaction and the Battle for Clarity

Coinbase has long asserted its innocence, stating that it acted within existing laws and that the SEC’s accusations were without merit. Now, according to Coinbase CEO Brian Armstrong, the case settlement agreement is a “big day” for both Coinbase and the greater crypto ecosystem.

Armstrong emphasized the broader implications of the SEC’s decision, stating, “If this goes through, it’s a really big deal, not just for us, but for the whole crypto industry. The 50 million Americans who hold crypto, and I think for the rest of the world because this is an important signal about where things are going.”

Armstrong was unreserved in a CNBC interview, calling the SEC’s case “bogus.” He said he hoped the dismissal would have a “domino effect” on the rest of the crypto…