The U.S. Securities and Exchange Commission (SEC) has closed its case against the platform Coinbase, which was accused of operating without registration. The decision followed a change in the agency’s leadership.
“It is time for the Commission to correct its approach and develop cryptocurrency policy in a more transparent manner,” said acting SEC Chairman Mark Uyeda.
For Coinbase, this investigation was a major legal challenge concerning the definition of securities and exchange registration rules. However, definitive answers to these questions still depend on further actions by the U.S. Congress.
The decision to drop the case was part of the broader strategy of the new SEC leadership, which is already closing similar investigations involving other crypto companies, including Robinhood and Uniswap.
In June 2023, the regulator filed a lawsuit against Coinbase, accusing the platform of violating securities laws and operating without registration.
In response, the exchange stated that the SEC’s actions exceeded its authority. Company representatives emphasized that the platform had repeatedly requested clarification regarding the application of securities laws.
SEC lawyers, in turn, questioned Coinbase’s claims of an alleged lack of information about violations.
During the proceedings, Coinbase filed a motion, demanding that the Commission, as well as its then-chairman Gary Gensler, provide internal correspondence and documents that formed the basis of the lawsuit.