Coinbase, one of the largest cryptocurrency exchanges in the United States, is on the verge of a legal victory as the Securities and Exchange Commission (SEC) plans to dismiss a landmark lawsuit against the company. This decision comes as a significant shift in the SEC’s regulatory approach towards cryptocurrencies.

The SEC had accused Coinbase of operating an unregistered securities exchange and offering unregistered securities back in 2023, under the leadership of former chair Gary Gensler. However, Coinbase vehemently refuted these allegations and even launched a countersuit to seek clear rulemaking from the federal regulator.

In a recent announcement, Coinbase revealed that the SEC will file to dismiss the federal lawsuit against them. Paul Grewal, Coinbase’s chief legal officer, stated, “There will be no settlement or compromise – a wrong will simply be made right.” This move signifies a victory for Coinbase, its customers, and the broader cryptocurrency community.

CEO Brian Armstrong expressed his optimism about the decision, expecting approval from the agency’s leadership led by interim chair Mark Uyeda. This dismissal of the lawsuit against Coinbase marks a significant departure from the SEC’s approach under President Joe Biden compared to the previous administration.

The decision to dismiss the lawsuit against Coinbase is seen as a positive development for the cryptocurrency industry, signaling a more favorable regulatory environment under the current administration. It also reflects a growing recognition of the importance of clear and consistent regulations for the crypto market.

Overall, the impending dismissal of the lawsuit against Coinbase is a significant milestone for the company and the broader cryptocurrency ecosystem. It highlights the importance of regulatory clarity and the need for constructive dialogue between industry players and regulators to foster innovation and growth in the digital asset space.