Coinbase said on Friday that the SEC agreed to withdraw a lawsuit against the company by prejudice.
Still, the movement of the SEC commissioner is another signal that the Trump administration plans to be more familiar with encryption than the former leader Gary Gensler.
The SEC lawsuit filed in 2023 argued that encryption assets are securities and Coinbase is operated as “unregistered state exchanges, brokers and liquidation institutions.”
Coinbase argued that the SEC has not established enough rules for Crypto.
“In 2023, many people were advising this and they did not participate in the lawsuit with the SEC. Coinbase CEO Brian Armstrong announced that the lawsuit is falling in a video posted on Friday X. In this video, Armstrong insisted on SEC’s motives and tactics.
Armstrong said he fought because he believed that he was saving the cryptocurrency industry in the United States.
“Many other companies didn’t have a deep pocket like us,” he said. “And ultimately we had to spend $ 50 million to defend this case.”
Coinbase spokesman said that this amount is strictly included in external law fees, not employee hours.
Except for Coinbase’s obvious legal victory, Armstrong still believes that the United States must pass the law on encryption, or that it is in danger behind other countries.
