With a major legal victory for the cryptocurrency industry, the Securities and Exchange Commission (SEC) has decided to withdraw the lawsuit against Coinbase without imposing a fine.
Coinbase founder and CEO Brian Armstrong attributes the development to recent political changes in Washington.
Armstrong thanked the Trump administration for his role in banishing SEC Chairman Gary Gensler, who was accused of “illegal conduct” along with Sen. Elizabeth Warren and his Congressional allies.
“Thank you to the Trump administration. Thank you for winning the election and removing Radical Sec Chairman Gary Gensler,” Armstrong said. “Our facts were so strong that we were sure we won this case no matter what, but this certainly facilitated the process and increased accountability.”
The lawsuit that Coinbase allegedly violated the securities law by providing unregistered securities was a major regulatory battle between the SEC and the crypto exchange. Armstrong raised concerns about the SEC’s regulatory approach in 2021, noting that it calls its actions against Crypto companies questionable.
In his statement, Armstrong paid tribute to the small crypto startup that was forced into bankruptcy due to legal costs associated with the SEC enforcement action.
“I especially want to take my hat off of a bankrupt crypto startup because they couldn’t afford legal costs. Your company is dead, but the crypto industry is still alive,” he said.
He also thanked lawmakers from both parties for supporting US crypto innovation, noting that pro-cryptic voters have become influential forces in the election.
Armstrong said he hopes the SEC will enact meaningful reforms under new leadership, referring to Paul Atkins, Mark Weda and Hester Perth, and even nods to Elon Musk’s efficiency initiative, “Doge.”
“Now, let’s promote US cryptography, clarify the rules and truly begin the next phase of development,” he concluded.
*This is not investment advice.
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