Coinbase boss claims SEC will drop crypto lawsuit

Published On Feb 21, 2025, 12:00 PM

Coinbase claims that the SEC plans to drop its lawsuit against the exchange, which accused Coinbase of operating illegally by offering unregistered securities and not registering as required for an exchange, broker, or clearing agency. Coinbase CEO Brian Armstrong stated on social media that an agreement has been reached to dismiss the lawsuit without penalties for the company, which he views as vindicating. The lawsuit was part of a broader enforcement trend against cryptocurrency firms. Armstrong also credited the pro-crypto voting bloc in the recent elections and criticized the previous SEC leadership for its tough stance on crypto.

Stock Forecasts

COIN

Positive

If the SEC formally drops its lawsuit against Coinbase, the company could see a significant boost in investor confidence, likely leading to an increase in its stock price. Positive regulatory news generally fosters a favorable market environment for cryptocurrencies and related stocks.

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