SEC and Coinbase Dismiss Litigation

In a significant development for the cryptocurrency industry, Coinbase Global Inc. and the United States Securities and Exchange Commission (SEC) have reached an agreement to dismiss the SEC's litigation against Coinbase. This announcement was made by Coinbase CEO Brian Armstrong on Friday through a social media post.

The litigation, which began in June 2023, accused Coinbase of allowing users to trade numerous crypto tokens deemed as "unregistered securities" and failing to register its staking program. These allegations suggested that Coinbase had been breaking SEC rules for years.

According to Armstrong, the agreement is pending approval from the Commission, which is anticipated to occur next week. Once approved, the dismissal will be complete, with no fines paid and no changes to Coinbase's business operations.

Following the announcement, Coinbase's shares saw a 5.53% increase during premarket trading, indicating a positive market response to the news.