The Securities and Exchange Commission (SEC) has dismissed its civil enforcement action against Coinbase Inc. and Coinbase Global Inc., citing a shift in its approach to crypto regulation, according to a Feb. 27 press release.
The SEC filed a joint stipulation with Coinbase to drop the case, which was originally part of the commission’s broader crackdown on digital asset firms.
The dismissal follows the creation of the Crypto Task Force on Jan. 21, a new initiative aimed at developing a more structured regulatory framework for the sector.
SEC Acting Chairman Mark T. Uyeda said:
“For the last several years, the Commission’s views on crypto have been largely expressed through enforcement actions without engaging the general public. It’s time for the Commission to rectify its approach and develop crypto policy in a more transparent manner. The Crypto Task Force is designed to do just that.”
The SEC clarified that the decision does not reflect a judgment on the merits of the claims brought against Coinbase. The agency stated that the Cyber and Emerging Technologies Unit would continue to investigate and take action against fraud involving blockchain technology and digital assets.
The move marks a potential shift in the SEC’s handling of cryptocurrency-related cases, which have long been criticized by industry leaders and lawmakers for regulatory ambiguity.
Coinbase, one of the largest crypto exchanges in the US, had been fighting the lawsuit as part of a broader legal battle over the SEC’s authority in the sector.
Other dismissals
The SEC has also recently dropped enforcement actions against other crypto firms, including Kraken and Ripple Labs, signaling a potential recalibration of its regulatory strategy.
These dismissals come as the agency faces increasing scrutiny from lawmakers and industry participants urging a clearer framework for digital assets.
While the SEC maintains that its enforcement efforts target bad actors in the space, critics argue that the shift acknowledges the need for a more collaborative regulatory approach.
The SEC’s dismissal of the case could indicate a broader effort to engage with industry participants on new policy initiatives rather than relying solely on enforcement actions.
However, the agency emphasized that the decision does not signal a change in its stance on other pending crypto-related lawsuits.
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