SEC drops case against Coinbase (COIN)

Coinbase (NASDAQ: COIN):

SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval – righting a major wrong. We’ve always maintained that we were right on the facts and the law, and today’s announcement confirms that this case should never have been filed in the first place. This is a victory not just for Coinbase, but for our customers, the United States, and individual freedom.

Coinbase went public in April 2021. As part of that process, the SEC reviewed our business model and S1 disclosures and allowed us to go public. Two years later, they sued us. That’s despite absolutely nothing changing in our business model.

What changed over those two years was the political leadership at the SEC. In its war against crypto it acted as if it was above the law, usurping the power of Congress as set forth in the Constitution. And after millions in legal costs and fees, countless employee hours, and years of protracted litigation, we have successfully protected our customers’ rights, and held the SEC accountable.

While dismissal will be a major win for the rule of law – and a clear vindication of our position – most of all it will be a win for the entire industry and the 52 million Americans who have owned a digital asset. To ensure innovation continues in America and a rogue regulator cannot weaponize the lack of clarity again, it is critical that we pass legislation which provides the long-term certainty needed for the US to lead in this industry. Clarity will bring new inflows of capital into the US, update our financial system so consumers pay lower fees, and help create economic freedom for all.

We believe we will eventually get to a point where the majority of global GDP runs on crypto rails. The key question is whether America will seize the opportunity to build this infrastructure, or be left behind. Today, we helped the US take a major step toward building this industry onshore. We must enable entrepreneurs, builders, and innovators to update our financial system and bring the world onchain.

We look forward to working with the SEC staff who stand ready to implement real change. In the meantime, Coinbase will never stop fighting for what’s right. Let’s keep building.

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