The Securities and Exchange Commission (SEC) is abandoning its lawsuit against Coinbase, closing a case that had dragged on for nearly two years and racked up millions in legal fees. The decision, which is pending final approval from the SEC’s commissioners, brings an end to what Coinbase has repeatedly called an “unlawful enforcement case.”
Coinbase announced the news in a blog post, saying:
“SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval—righting a major wrong.”
The company said this decision proves it was right all along.
“Great news! After years of litigation, millions of taxpayer dollars wasted, and real damage done to the country, we’ve reached an agreement with SEC staff to dismiss their lawsuit against us.”
– Brian Armstrong
SEC staff have agreed to dismiss their case against us (pending Commission approval).
But this isn’t the end.
It’s the beginning.
And if there were ever a time to build—that time is now.Thank you to everyone who stood with us, and stood with crypto. pic.twitter.com/gjokUZPotz
— Coinbase 🛡️ (@coinbase) February 21, 2025
SEC sued after approving Coinbase’s public listing
Coinbase went public in April 2021 after the SEC approved its business model and signed off on its S-1 registration. But two years later, in a decision that baffled the industry, the agency turned around and sued Coinbase, accusing it of operating as an unregistered securities exchange.
The company called the lawsuit a blatant overreach, saying that nothing about its business had changed between the SEC’s approval in 2021 and the lawsuit in 2023. The only real difference? The SEC’s leadership.
“What changed over those two years was the political leadership at the SEC. In its war against crypto, it acted as if it was above the law, usurping the power of Congress as set forth in the Constitution,” Coinbase said in its statement. “After years of protracted litigation, we have successfully protected our customers’ rights and held the SEC accountable.”
In his own statement, Brian said, “They told us the only way to avoid litigation was to delist assets they falsely claimed were securities. It was a power move. Gensler and his allies wanted to crush crypto in America.” He added that backing down would have meant handing the SEC the power to decide which crypto assets could exist in the U.S., pushing the industry even further offshore.
Coinbase refused. It fought the case in court, despite tens of millions of dollars in legal fees and pressure from regulators using backdoor tactics to cut off business relationships. The company took the hits but stood firm, betting that the courts would rule in its favor. And now, that bet has paid off.
For Brian, this wasn’t just about Coinbase—it was about protecting the entire crypto industry. “I used to think regulators existed to hold companies accountable. What I’ve realized is that sometimes, companies have to hold regulators accountable.” He said this case proved that the SEC’s abuse of power could be challenged and beaten.
He also credited the Trump administration’s election victory for speeding up the resolution, saying that Gary Gensler and Elizabeth Warren led the attack against crypto and were backed by a small group in Congress. Without them, the case collapsed.
Brian acknowledged that many startups didn’t survive the SEC’s crackdown. He said their failure wasn’t a reflection of the market, but the result of targeted attacks from regulators who wanted the industry dead. He had a message for those companies: “Your company may be gone, but crypto isn’t. Keep building.”
Chief Legal Officer Paul Grewal said that: “Legislation is critical to ensuring this type of unlawful behavior doesn’t happen again. We won’t stop fighting until we have the clear rules needed to enable the industry to truly thrive in the United States. Collaboration will be key. We look forward to working with Congress and SEC staff on this next phase of progress.”
With the SEC battle nearly behind it, Coinbase is doubling down on global expansion. Last week, the company partnered with the Aston Martin Aramco Formula One™ Team, making it the exclusive crypto sponsor of the racing giant.
Coinbase is taking crypto to five continents through this deal, driving its message to a massive international audience as Aston Martin gears up for the 75th Formula One World Championship in 2025.
This partnership puts Coinbase’s logo on the halo and rear-wing end plate of Aston Martin’s AMR25 cars, as well as on Fernando Alonso and Lance Stroll’s racing suits.
Coinbase is funding the entire partnership in USDC, making Aston Martin Aramco a Coinbase Prime customer and promoting the use of stablecoins for payments.
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