Coinbase and SEC Reach Agreement to Dismiss Lawsuit with No Fines, Pending Approval

Coinbase announced that it has reached an agreement in principle with the U.S. Securities and Exchange Commission (SEC) staff to dismiss the SEC's enforcement case against the company, pending Commissioner approval expected as early as next week.

CEO Brian Armstrong stated that, upon approval, the case would be fully dismissed with no fines paid and no changes to Coinbase's business. The SEC had initially sued Coinbase in June 2023, two years after the company went public in April 2021, accusing it of operating as an unregistered securities exchange.

Armstrong highlighted that the litigation involved years of legal proceedings and significant costs, and described the enforcement action as "unlawful from the start." The potential dismissal marks a significant development for Coinbase and the broader cryptocurrency industry, with Coinbase's shares rising over 5% in pre-market trading following the announcement.

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