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Olumide Adesina•Saturday, February 22, 2025•2 min read
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Brad Garlinghouse, the CEO of Ripple, responded to the SEC’s sudden decision to drop the Coinbase case by saying that the agency is now “quickly” moving on from the previous administration’s practices.
Suffice it to say (as I know there are lots of impatient people, including me!), this SEC has demonstrated a clear interest in moving on quickly (!) from the failed regulation by enforcement policies of the last Administration,” he stated.
Coinbase CEO Brian Armstrong announced the agency would drop its action against the leading US exchange. Notably, the trading platform won’t have to pay a symbolic charge or make any concessions.
The US Securities and Exchange Commission has consented to drop its case against Coinbase, a centralized exchange claimed was acting as an unlicensed securities broker.
Coinbase announced before the lawsuit is formally dismissed, the dismissal is still pending approval by an SEC commissioner.
Coinbase CEO Brian Armstrong said:
“If this goes through, it’s a big deal, not just for us, but for the whole crypto industry, the 50 million Americans who hold crypto, and I think for the rest of the world because this is an important signal about where things are going.”
The SEC, under the leadership of former Chair Gary Gensler, claimed that Coinbase had failed to register its staking services with the financial watchdog.
The SEC filed a lawsuit against Coinbase in 2023, labeling certain cryptocurrencies “unregistered securities.”
The “staking” feature on the platform, which enables users to earn incentives by blocking their assets to confirm transactions on a blockchain, was also the subject of the complaint.
The cryptocurrency industry supports Coinbase’s assertion that cryptocurrencies do not meet the criteria for an investment contract, in contrast to stocks and bonds.
The Nasdaq listed exchange criticized the SEC for taking the decision, claiming it was a regulatory overreach after approving the company’s public listing on US stock exchanges in 2021.
The business started a political pressure campaign alongside Ripple that advocates for industry-friendly legislation with the U.S. government.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
www.fxleaders.com