Coinbase CEO Brian Armstrong Announces Victory in SEC Legal Battle

Shares of Coinbase (NASDAQ:COIN) climbed 2.4% in early Friday trading after CEO Brian Armstrong revealed that the Securities and Exchange Commission (SEC) had agreed to fully dismiss its lawsuit against the crypto exchange.

Coinbase CEO Claims Victory in SEC Legal Battle, Stock Rises

Shares of Coinbase (NASDAQ:COIN) climbed 2.4% in early Friday trading after CEO Brian Armstrong revealed that the SEC had agreed to fully dismiss its lawsuit against the crypto exchange.

Coinbase stock zoomed out to gains of 4.5% on Friday morning after CEO Brian Armstrong announced an imminent legal victory against the U.S. Securities and Exchange Commission (SEC).

According to Armstrong, the SEC’s decision, which is expected to be formally announced next week, will result in a complete dismissal with zero fines or business changes for Coinbase.

“This is hugely vindicating, especially because many ppl questioned my decision to engage in litigation with the SEC on this matter in 2023.”

A Background on Coinbase’s Legal Battle with the SEC

The SEC filed a lawsuit against Coinbase in 2023, alleging that the company was operating an unregistered securities broker. During the Biden administration, the SEC maintained that most major crypto tokens are classified as securities, a stance that Coinbase has consistently challenged, arguing that crypto assets behave more like commodities.

Coinbase opted to fight the SEC’s claims in court, arguing that the agency had overstepped its authority and that the lawsuit would have a chilling effect on the U.S. crypto industry. The legal battle attracted attention throughout the crypto community and had the potential to set a precedent for how digital assets are regulated in the country.

Coinbase CEO Credits Trump Victory, Gensler Departure for Lawsuit Dismissal

Armstrong credited the Trump administration’s election victory and the departure of SEC Chair Gary Gensler for influencing the lawsuit’s dismissal. He also criticized the case for wasting taxpayer money and causing irreparable harm to the U.S. crypto industry.

“This lawsuit was completely unnecessary and a total waste of taxpayer money. It’s also caused irreparable damage to the US crypto industry, driving many entrepreneurs and traders overseas.”

Coinbase to Continue Working with SEC, Other Regulators

Despite the legal battle, Armstrong stated that Coinbase planned to continue working productively with the SEC and other regulatory agencies around the world. The dismissal of the lawsuit marks a pivotal moment for the crypto exchange as it continues its expansion and regulatory engagement.

With Coinbase stock up, investors are keeping an eye on how the company will use this legal victory to strengthen its position in the digital asset market.