The US Securities and Exchange Commission (SEC) announced on February 27, 2025, its decision to dismiss the civil enforcement case against Coinbase.

Last week, the regulatory agency publicly revealed its intention to end the legal dispute against Coinbase, which began in 2023. The lawsuit accused Coinbase of functioning as an unregistered securities exchange while facilitating trading of at least 13 crypto tokens, suggesting that these tokens should have been registered as securities.

SEC Acting Chair Mark Uyeda stated, “It’s time for the commission to rectify its approach and develop crypto policy more transparently.” These remarks came as SEC lawyers filed a motion to dismiss the Coinbase case.

It’s official: case dismissed.
Time for fair legislation for the entire industry. pic.twitter.com/fRsZVX4sBk
— Coinbase 🛡️ (@coinbase) February 27, 2025

The dismissal does not imply that the SEC is free from other legal issues concerning Coinbase. Other legal matters include Coinbase’s petition urging the SEC to establish definitive crypto regulations and their aims to acquire SEC’s internal documents relevant to the agency’s stance on digital assets.

For Coinbase, establishing clear rules regarding crypto securities is paramount. The company has raised essential legal inquiries regarding the definition of a crypto security and the processes a digital asset exchange must follow to register with the SEC.

These fundamental questions remain unanswered, and there are hopes that the US Congress will provide solutions moving forward.

Series Of Cases Rolled Back Since New SEC Leadership Took Charge

Since the beginning of the current administration, the agency has dismissed several high-profile legal cases, indicating a shift in enforcement strategy. In February alone, eight companies, including Coinbase, have had their cases dropped by the regulatory body.

On February 28, 2025, the SEC dismissed the case against Consensys’ MetaMask, having previously accused it of securities violations regarding its staking services and crypto swapping features.

The lawsuit against Justin Sun’s TRON, initiated in 2023, has also been paused this week, suggesting a possible settlement. The SEC’s investigation into Gemini’s earn lending program is now closed, with no further enforcement actions planned.

Recently, the SEC concluded its investigation into OpenSea, which had been accused of violating securities laws through the sale of NFTs on its platform.

Leadership Shakeup Under the Trump Administration

The SEC’s new direction under the current presidential administration marks a break from the strict enforcement policies of the previous administration, transitioning towards pro-crypto regulations. This change became particularly apparent following the exit of former SEC Chair Gary Gensler, known for his skepticism towards cryptocurrencies.

Mark Uyeda, appointed by Trump, has started to roll back previous aggressive regulatory stances on crypto and has placed individuals who support a pro-crypto approach in key positions, including Commissioner Hester Peirce leading the SEC’s crypto task force.

Key Takeaways

• The SEC has dismissed its lawsuit against Coinbase, signaling a pro-crypto regulatory shift.
• Eight high-profile cases, including Coinbase’s, have been dismissed recently.
• The dismissal of this case does not absolve the SEC from addressing other ongoing legal matters related to Coinbase.