In a landmark decision for the crypto industry, the U.S. Securities and Exchange Commission (SEC) has agreed to drop its enforcement case against Coinbase. The move, pending approval from SEC commissioners, marks a major victory for the crypto exchange and its supporters.
The case, initiated in 2023 under former SEC Chair Gary Gensler, accused Coinbase of operating an unregistered securities exchange and failing to register its staking program properly. However, the regulatory landscape is shifting under President Donald Trump’s administration, which has taken a more pro-crypto stance.
A Turning Point for Crypto Regulation
Coinbase CEO Brian Armstrong hailed the decision as a “huge day” for the industry, emphasizing that the company would not pay any fines. Speaking on CNBC’s Squawk Box, Armstrong stated that this move signals the end of what he called an “unlawful attack” on crypto by a small group of regulators in the previous administration.
“I hope they’ll dismiss all the bogus cases, frankly, and it will be a domino effect for the rest of the industry,” Armstrong added.
The SEC has not yet issued an official statement on the matter.
Trump’s Crypto-Friendly Policies
The regulatory shift follows Trump’s growing support for the crypto industry. During his 2024 presidential campaign, he actively engaged with crypto leaders, attended the Bitcoin Conference, and received financial backing from industry figures.
On January 23, Trump signed an executive order to establish a working group focused on drafting a clear regulatory framework for digital assets. The move aims to bring much-needed clarity to an industry long caught in a tug-of-war with regulators.
Bitcoin Breaks $100K as Market Reacts
Crypto markets responded positively to the news. Bitcoin surged past the $100,000 mark for the first time, reflecting renewed investor confidence. Meme coins, including a Trump-endorsed digital asset, also saw a significant rally.
The SEC’s shift in stance could set a precedent for other crypto firms facing regulatory scrutiny, signaling a new era of mainstream adoption and legal clarity.
As the dust settles, all eyes are on how the new administration will shape the future of crypto regulation in the U.S.
