Coinbase CEO Brian Armstrong has claimed that the US Securities and Exchange Commission (SEC) is set to drop its lawsuit against the cryptocurrency exchange, marking a significant turn in the legal battle.

The SEC filed the lawsuit in 2023, alleging that Coinbase violated securities laws by offering investments subject to its rules without proper registration. The regulator accused the firm of illegally operating as an exchange, broker, and clearing agency without meeting regulatory requirements. The lawsuit also charged Coinbase with offering crypto assets deemed to be "unregistered securities."

In a post on X, Armstrong said an agreement had been reached with SEC staff to dismiss the case, meaning Coinbase would not be required to pay fines or alter its operations. "The potential dismissal of the SEC lawsuit is hugely vindicating," Armstrong wrote, while also crediting President Donald Trump’s election victory as a catalyst for the decision.

Armstrong praised US crypto holders for electing pro-crypto candidates across party lines, emphasizing the influence of the "crypto voter" in shaping policy. "It turns out the crypto voter is real, and showed up in the millions," he added.

The case was part of the SEC’s broader crackdown on cryptocurrency firms, an approach championed by former SEC chair Gary Gensler. Under his leadership, the regulator also filed a similar lawsuit against Binance, the world's largest cryptocurrency exchange. That case was recently paused for 60 days as US regulations surrounding digital assets continue to evolve.

Trump has positioned himself as an ally of the crypto industry, vowing to fire Gensler on "day one" of his presidency. The regulatory shift has given Coinbase and other crypto firms hope for more favorable treatment under the new administration.

Paul Grewal, Coinbase’s chief legal officer, also commented on the matter, stating that "there will be no settlement or compromise—a wrong will simply be made right." He reaffirmed Coinbase’s commitment to pushing for clear regulatory guidelines, calling on Congress and SEC staff to work together to support the growth of the crypto industry in the US.

While the SEC has yet to confirm the lawsuit’s dismissal, the development signals a potential shift in regulatory attitudes towards cryptocurrency firms as they push for clearer rules and fairer oversight.

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