Coinbase Anticipates SEC Lawsuit Dismissal Following Agreement; Shares Rally

Coinbase CEO Brian Armstrong announced on Friday that the exchange has reached an agreement with the U.S. Securities and Exchange Commission (SEC) that could lead to the dismissal of the lawsuit filed against the firm in 2023. Armstrong stated that the agreement, expected to be approved by the Commission next week, involves no fines or changes to Coinbase's operations. The SEC had alleged that Coinbase was operating illegally by offering unregistered securities. Following the announcement, Coinbase shares rallied approximately 4.7% in pre-market trading. Armstrong criticized the SEC's previous actions, led by former chair Gary Gensler, as a "bullying tactic" and expressed gratitude towards the pro-crypto stance of Donald Trump's administration. Coinbase's Chief Legal Officer, Paul Grewal, also confirmed the development, emphasizing that "a wrong will simply be made right." The potential dismissal is seen as a positive sign for the cryptocurrency industry, potentially leading to the collapse of other SEC cases.