Brian Armstrong: Coinbase Reaches Agreement With SEC To Dismiss Litigation Case

• SEC staff have agreed to dismiss its case against Coinbase, though this is pending Commission approval.
• The SEC warned, charged, and fined dozens of firms including Robinhood, Consensys, Kraken, and Uniswap, between 2023/24.
• Coinbase (COIN) shares rallied some 4.7%  in pre-market trading following the announcement.

Coinbase CEO Brian Armstrong has revealed that the exchange has reached an agreement with the U.S. Securities and Exchange Commission which could see the conclusion of the lengthy courtroom battle.

Perhaps officially marking the end of a costly political war against the cryptocurrency industry, a full dismissal could see all other SEC cases collapse in quick succession.

Coinbase vs. The SEC

The legal battle between Coinbase and the SEC has taken years and cost millions of dollars for both parties, including the American taxpayer.

According to the announcement from Armstrong, the exchange has finally reached an agreement with the regulator, writing:

“Once approved by the Commission (which we’re told to expect next week) this would be a full dismissal, with $0 in fines paid and zero changes to our business.”

In the lengthy post, Armstrong reiterates his position that the SEC was wrong on the law. He states that the regulator exceeded the remit of its authority by requesting the exchange to delist cryptocurrencies.

The SEC also took issue with several other aspects of its business including its wallet and staking, which were viewed as moves for the regulator to set legal precedent and gain more leverage against crypto.

However, the bedrock of the SEC’s legal pursuits rested on its interpretation of security laws. Armstrong continues:

“We had taken a conservative approach to ensure we weren’t listing any securities, and the SEC itself had allowed us to go public in 2021 after reviewing our listing standards in depth”

He adds that the firm has attempted to “come in and register” though as many other crypto firms found out, “it was a fake offer.”

He notes that had Coinbase folded and bowed to demands, namely delisting assets that the SEC “falsely” asserted were securities, it could have destroyed the American crypto industry.

“It was a bullying tactic, pure and simple, driven by Gensler’s own political agenda. And if we had caved, it would have dramatically limited the scope of which crypto assets were allowed in the US, and pushed the industry further offshore, into the shadows.“

Coinbase, Ripple (XRP), and many others in the crypto business were delighted to see the resignation of, as Armstrong puts it, “activist” SEC head, Gary Gensler.”

He also offers his thanks to Donald Trump’s administration, which is swiftly building out its sweeping pro-crypto agenda.

Brian Armstrong Looks Forward to SEC Reform

It was a costly period for U.S. crypto firms. Armstrong praises those who could afford to fight back against the SEC and sends his commiserations to smaller firms that “went bankrupt” due to the “abusive tactics” levied against them.

Though the post is somewhat politically loaded, Armstrong expresses gratitude to both sides of the aisle, the voters, and the crypto holders, praising Democrat and Republican members of Congress who have continued to work favorably for crypto.

“I know that Gary Gensler and Elizabeth Warren do not represent the entire Democratic party.“

Coinbase’s Chief Legal Officer (CLO), Paul Grewal, also expressed his delight in the development but reminded us that there’s still work to do “and we can’t take our eyes off the ball,” adding “collaboration is key.”

The news follows on from other recent positive developments, with both Binance and Ripple working towards more amicable outcomes with the SEC. In his closing statement, Armstrong says he looks forward to a more productive relationship with the SEC:

“I look forward to the SEC being reformed under Paul Atkins, Mark Uyeda, Hester Peirce, and DOGE, and new more sensible personnel coming into leadership roles.”

Now, as revelations around the anti-crypto conspiracy “Operation Chokepoint 2.0” continue to evidence foul play from the previous administration, excitement around even more cases being dropped, in their entirety, is at an all-time high.