Coinbase says SEC will drop an encryption suit

The Securities and Stock Exchange Committee agreed to drop a lawsuit against the company, filed a legal cloud on the global encryption industry and indicating a wider decline by federal organizers, said the Securities and Stock Exchange Committee agreed to drop a lawsuit against the company, and to file a legal cloud on the global encryption industry and indicate a wider decline by federal organizers.

Coinbase, in a Post on his website And in a Organizational depositShe said that she reached an agreement in principle with SEC to withdraw the lawsuit without any financial penalty. If the Supreme Education Council confirmed the proposed settlement, this will be a noticeable reflection by the agency after years of legal battles against encryption companies.

SEC sued Coinbase, the largest American encryption company, in 2023, on the basis that the digital currencies on their platform constitute unregistered securities exposing consumers at risk of financial harm.

Any settlement that leads to the refusal of the case requires the approval of the SEC Commissioners. The agency’s spokesman declined to comment on the Coinbase.

The lawsuit was the most important of many SEC companies against major encryption companies, on the pretext that they were working outside the law. It was possible that the victory of the government had threatened to continue operating Coinbase, a company that publicly traded at about $ 65 billion, and represented the broader encryption market.

The chapter will be the biggest victory for the encryption industry since President Trump took office last month, and promised to end the organizational management campaign of the Biden Administration for encryption under the former SEC chair, Gary Gensler. This will emphasize the increasing influence in Washington from the executives of billionaire technology, who wrote huge checks to support Mr. Trump’s campaign, in the hope of securing more soft organization.

Paul Ghrouwal, Coinbase’s chief official, said in an interview that the agreement “was no less than a full victory” – Coinbase would not have to recognize any violations or pay a fine. He said that the agency agreed to reject the case with bias, which means that the lawsuit cannot be filed again.

“The case disappears as if it has never been presented,” said Mr. Grewal.

On Friday, the proposed decision discussed a blog post entitled “Correcting a big mistake.”

Dennis Keylir, CEO of Better Markets, a non -profit organization that is pushing for more transparency in Wall Street, said that SEC’s unilateral surrender will undermine confidence in the committee’s ability to organize markets and protect investors.

“The Supreme Education Council used to apply the law without fear or good, but it now prefers the encryption industry and for fear of encrypted cryptocurrencies that publicly underestimate the agency.”

Coinbase as an encrypted currency market – a platform that investors can easily settled into digital assets like Bitcoin or Ether. Every time sales pass, the company collects fees.

Coinbase was yearned in 2021, a teacher of the encryption industry in the United States. Its founder and CEO, Brian Armstrong, immediately became one of the richest executives in technology in the country.

But the following year, the FTX collapse, one of the best Coinbase’s competitors, sent the encryption markets to a collapse. Mr. Jinsler accelerated a campaign on the industry he started when he took over the agency in 2021.

His legal argument was simple: almost all cryptocurrencies are securities, just like stocks and bonds traded in Wall Street. Any person who is provided by registration in SEC must follow strict rules to protect investors. He referred to the Supreme Court ruling a century ago regarding what constitutes an investment contract, on the pretext that it should rule digital assets.

As the best encrypted currency seller in the United States, Coinbase has become one of the main goals of Mr. Gensler. In a lawsuit in 2023, SEC argued that the company “raised its interest in increasing its profits on the interests of investors, and compliance with the law.”

During the reign of Mr. Jinsler, the agency filed similar cases against other encryption markets, such as Binance and Kraken. (These claims are still pending.) Executive officials have argued that Mr. Jinsler was using unfair enforcement procedures and an old playing book to regulate the rapid growth industry. They pressed the federal legislation that would have supervised the industry for the commodity futures trading committee, which is a smaller and less aggressive organizer than the Supreme Education Council

This was followed by a complex legal law, as judges in various judicial states issued conflicting opinions on the legal status of encrypted currencies. Last year, the judge oversees the Coinbase case unacceptable A proposal from the company to reject the lawsuit, which raises the stage on a legal battle over years that could reach the Supreme Court.

However, while the encryption companies were fighting the Supreme Education Council in the court, this industry was also filling to reshape the political scene.

Crypto’s executive officials threw their support behind Mr. Trump, who started his commercial coding last year. Wealthy technology investors such as Mark Andrink, whose project company is a major investor in Crypto, quote Mr. Trump’s support for digital currencies as a major reason they supported.

The encryption industry also sought to influence Congress: Coinbase was one of the major financiers in Fairshake, Crypto Super Pac, which donated more than $ 130 million to legislative candidates.

Since his victory, Mr. Trump has taken a series of steps to push the interests of industry. Adventure investor, David Sachs, who is an encryption enthusiast, chose as “encryption and AI CZAR” for the White House. Paul Atkins, a securities lawyer, nominated the encryption companies, to lead the Supreme Education Council

While Mr. Atkins is waiting for confirmation, Mark T. leads. Oida, Republican Commissioner at the Supreme Education Council, Agency. This month, SEC has expanded her enforcement efforts to encryption, and has been appointed lawyers who worked in a team of 50 people dedicated to encryption cases.

Mr. Grewal, the former federal judge, refused to name SEC officials who negotiated the case to resolve the case with Coinbase. But he said that the deal had “full support for leadership.” He said that next week, the agency’s commissioners will vote for approval of the deal, a process that he described as formal.

“We have finished this issue with such blatant conditions with Securercering, a model and a model,” said Mr. Grewal. “I hope we will not have the last thing, but the first of these cases fall.”

However, some former SEC lawyers have expressed concern about the repercussions of the decision.

John Reed Stark, a former SEC enforcement official and now an organizational advisor, said it is rare for the committee to reject cases such as Coinbase, in which the judge has already refused to request litigation. He said that this may affect the morale of employees in the Supreme Education Council

“This radical turn has never happened,” said Mr. Stark. They have already cut the encryption unit in half. Everyone worked in this group is completely devastating. “