The US Securities and Exchange Commission, or SEC, has officially requested the dismissal of its case against Coinbase with prejudice, meaning it cannot be reopened. This milestone marks a significant victory for the crypto industry, which has been the target of aggressive regulatory actions in recent years. The news was confirmed through documents presented before the New York Southern District Court, which were reviewed by various media outlets.
This development comes after comments and conversations between the two parties. The SEC had accused Coinbase of operating without registration as a broker, exchange, and clearinghouse. However, Coinbase has maintained that cryptocurrencies are not securities and that the current regulation does not adapt to the nature of these assets.
The dispute between the SEC and Coinbase began in June 2023, when the regulator accused the platform of operating in the US without registering as a broker, exchange of values, and clearing house. The SEC argued that Coinbase had combined these three functions without fulfilling the US regulatory framework, which requires that these services be separated and under supervision. The regulator also denounced that the platform marketed unregistered securities, referring to several tokens arranged for commercial operations on its US platform.
However, Coinbase has sustained that cryptocurrencies are not securities and that the current regulation does not adapt to the nature of these assets. The closure of the case against Coinbase is not an isolated fact; hours before, Joseph Lubin, founder of Consensys, announced that the SEC had also decided in principle to close its case against Metamask, the popular Ethereum wallet.
This turn in the regulatory strategy of the SEC seems to be linked to changes in government administration. Since the beginning of his second term, President Donald Trump has adopted a more favorable position towards the crypto industry, which has led to a review of regulation and compliance policies. The commissioner and current interim president of the SEC, Mark T. Uyeda, acknowledged that the agency has made mistakes in its regulatory approach.
The creation of a working group on cryptocurrencies will work on defining lighter regulations and adapted to the sector. In addition to the above, the SEC has also chosen to close other processes under investigation, such as those of OpenSea, Uniswap, and Robinhood, as well as the exchange of the Winklevoss brothers, Gemini.
The withdrawal of the case against Coinbase is seen as a positive precedent for other crypto companies that have faced similar regulatory actions. The decision suggests that the SEC could be revaluing its regulation strategy under legal actions, which could generate a more stable environment for innovation in blockchain and digital assets under a more conciliatory optics.
Some analysts believe that this change could boost crypto market growth in the US, encouraging institutional investment and the development of financial products based on cryptocurrencies. However, regulatory uncertainty does not yet disappear completely. Although the SEC seems to have adopted a more moderate tone, there is still no clear regulatory framework for digital currencies in the US. In the coming months, the industry will be attentive to the new policies that arise from the working group on cryptocurrencies.
It’s worth noting that investments in cryptoactive are not regulated in some countries and may not be appropriate for retail investors, as the total amount invested could be lost. It’s essential to see your country’s laws before investing and to be aware of the risks involved. This is an informative article, and it should not be considered as investment advice.
