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Coinbase wins historic victory against SEC: a turning point for the crypto industry

Friday, February 21, 2025

The US agency is proposing to drop the lawsuits filed in 2023 against the platform. This new development could pave the way for a legal relaxation of the qualification of cryptocurrencies in the United States.

This is a landmark decision in the history of cryptocurrencies in the United States. After months of a legal tug-of-war, the Securities and Exchange Commission (SEC) has decided to drop the case against Coinbase - subject to approval by the agency's commissioners - ending one of the most iconic disputes between the financial regulator and the digital asset industry. An outcome that resonates far beyond the company led by Brian Armstrong, marking a potential shift in the US regulatory approach to cryptocurrencies.

The case, which began in June 2023, hinged on the qualification of digital assets as financial securities, a legal debate fundamental to the future of the sector. The SEC accused Coinbase of acting as an unregistered broker, exchange and clearing agency, an argument firmly rejected by the platform. The case symbolised the debate around whether all cryptos were at risk of being recharacterised as traditional financial securities (security).

On hearing that the charges had been withdrawn, Coinbase reacted strongly: "We have always maintained that we were in the right, and today's announcement confirms that this case should never have been brought in the first place," the company said in an official statement.

Suits filed 2 years after the SEC validated Coinbase's IPO

Coinbase was quick to point out the inconsistency of the SEC's position. "When we went public in 2021, the SEC reviewed our business model and disclosures without objecting. Two years later, it sued us, even though our model had not changed at all," points out the company, which has a capitalisation of $64 billion. For the platform, the SEC's U-turn was above all the result of a change in leadership within the agency, which is said to have waged a veritable "war on cryptos" by acting "as if it were above the law". A way of tackling Gary Gensler, chairman of the SEC between 2021 and 2025, and the crypto industry's primary opponent during his tenure.

The withdrawal of the lawsuits is not just a victory for Coinbase, but also for the entire crypto ecosystem in the United States. The company believes the decision "will ensure continued innovation in America" and is calling for a clear legislative framework to be put in place, so that "a regulator can never again exploit regulatory uncertainty to attack the industry". According to Coinbase, this legal clarity would be a key lever for attracting capital flows to the US, modernising the financial system and fostering the growth of greater economic freedom.

Change in political line

The political context also played a key role in this U-turn. The election of Donald Trump in November 2024, who has positioned himself as a defender of cryptocurrencies, led to the appointment of Paul Atkins, a former SEC commissioner sympathetic to blockchain innovation, as head of the agency. This change in leadership has fostered a more conciliatory approach towards crypto companies, paving the way for the gradual abandonment of litigation brought by the previous administration.

Coinbase, which positions itself as a key player in the democratisation of cryptocurrencies, is now looking to the future with confidence. "We are heading towards a world where the majority of global GDP will run on crypto rails. The question is whether the US will seize this opportunity to build this infrastructure, or whether it will be left behind," the company warns.

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This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.

Before investing in any product, investors should fully understand the risks involved and consult their own legal, tax, financial, and accounting advisors.

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