Key Points
- Coinbase’s Brian Armstrong delivered the bullish news via X.
- The full dismissal from the SEC will come with zero fines paid and no changes to the business.
Coinbase and the entire crypto industry are celebrating the latest agreement of the crypto exchange with the US SEC. The regulator reportedly agreed to dismiss the litigation case against Coinbase.
According to Brian Armstrong, the CEO of the crypto exchange, once approved by the Commission, an approval that might happen next week, the dismissal would be 100% complete without any fines and no changes to the business.
Coinbase Engaged in Litigation with the SEC in 2023
This is a huge win for Coinbase, especially since a lot of people have questioned Armstrong’s decision to engage in litigation with the SEC on the matter in 2023.
Despite naysayers claiming that his move would not look good in front of investors and that the whole process would take years and cost the exchange millions of dollars in legal fees, justice was eventually on Coinbase’s part.
Armstrong revealed a few important truths that helped him make the decision to fight the SEC in court.
Armstrong’s Weapons Against the US SEC
1. The SEC Exceeded Authority
The SEC exceeded its authority, Armstrong said, by asking the exchange to delist assets that were not securities. regulators are supposed to enforce the law, but they cannot make up new ones nor weaponize the current lack of clarity in the law, he said.
2. Agreeing to the SEC Would “Have Killed” US Crypto Industry
Armstrong also said that the SEC made it clear that the only way to avoid litigation was to delist the assets they falsely claimed to be securities. It turned out that this was driven only by Gary Gensler’s own political agenda.
If the exchange had given up, this would have limited the aim of the crypto assets in the US, pushing the industry offshore.
3. Fighting the SEC Was the Right Thing for the Industry and Customers
Armstrong also said that, at the end of the day, it didn’t even matter what chances of success they had, but it was important to stand up for customer and industry rights.
He said that the exchange is comfortable engaging in litigation across multiple fronts while continuing the build.
Accountability Should Happen in Both Ways
Armstrong noted that it’s important that accountability happens both ways, saying that Coinbase’s mission is to boost economic freedom. He also highlighted how important it is to fight bad actors in governments as well.
He also gave credit to the current Trump administration which brought crypto-friendly policies after winning the elections and led to the departure of the former SEC Chair, Gensler, who orchestrated unlawful actions with Elizabeth Warren and more.
Armstrong recalled calling the SEC’s sketchy behavior in 2021, and he gave a shoutout to all the crypto startups that could not afford the legal fees of fighting the regulator and went bankrupt due to the administration’s abusive tactics.
He also gave a shoutout to all the crypto holders in the US who elected pro-crypto candidates. Armstrong said that he’s looking forward to the SEC being reformed under Paul Atkins, Mark Uyeda, Hester Peirce, and DOGE – the cabinet led by Elon Musk.
