Coinbase has announced that the U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against the company. The decision, revealed on the morning of February 16, is pending approval from the SEC Commissioners.
Brian Armstrong, Coinbase’s CEO, shared the news on social media platform X, calling it a “full dismissal” with no fines or required changes to the company’s operations. He also thanked the Trump administration for its role in the matter.
Great news!
— Brian Armstrong (@brian_armstrong) February 21, 2025
After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase. Once approved by the Commission (which we're told to expect next week)… pic.twitter.com/IlnoBs7N6n
The SEC, led by Chair Gary Gensler, has pushed for stricter oversight of the cryptocurrency industry, arguing that certain digital assets should be classified as securities. Coinbase, among other firms, has opposed this stance, advocating for new regulations tailored to the industry.
Political donations and crypto influence
While Coinbase’s announcement did not mention political contributions, reports highlight the company’s significant financial support for pro-crypto political action committees (PACs). According to CNBC, Coinbase was among the top corporate donors during the last election cycle, contributing over US$75 million to Fairshake and other pro-crypto PACs. The company also reportedly donated seven figures to former President Donald Trump’s inaugural committee. Additionally, Armstrong is said to have personally donated more than US$1.3 million to political campaigns.
Armstrong has previously spoken about the importance of financial influence in Washington. In a podcast interview last year, he explained that for the cryptocurrency industry to gain political recognition and influence, it needed to invest in political campaigns. “To be on everyone’s radar and have political power in DC and matter, a couple of things were required: One was that we needed to have money – specifically, the industry needed to give more to super PACs,” he stated.
Coinbase’s Chief Legal Officer, Paul Grewal, also mentioned the company’s strategy in a social media post last August. He highlighted Coinbase’s efforts to shape a “more free and fair economic future”. He pointed out that crypto companies had provided nearly half of all corporate funding for the 2024 election cycle.
Coinbase looks ahead to future SEC relations
With the lawsuit seemingly ending, Armstrong has expressed optimism about Coinbase’s relationship with the SEC moving forward. He stated that the company expects to “continue working productively with the SEC on any number of items over the years, just as we do with every agency around the world where we operate.”
By this account, Coinbase's efforts to support a more free and fair economic future are succeeding. And they are right. We’re nothing but proud to exercise our free speech rights by advocating for an updated financial system to benefit all Americans. https://t.co/FcXYWKg3Kf
— paulgrewal.eth (@iampaulgrewal) August 21, 2024
The focus now shifts to the SEC’s leadership as the agency awaits the appointment of Trump’s nominee, Paul Atkins. Atkins, a former SEC Commissioner, is known for his pro-business stance and opposition to excessive regulation.
The crypto industry now sees this as a major victory, with Coinbase emerging from the legal battle without penalties or operational changes. The decision could have wider implications for how the SEC approaches cryptocurrency regulation in the future.
