The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Coinbase, the largest cryptocurrency exchange in the United States.

This legal battle, initiated in 2023, accused Coinbase of operating as an unregistered securities exchange and facilitating trading of crypto tokens that the SEC considered securities. The decision to drop the case reflects a significant shift in the SEC's regulatory approach under President Donald Trump's administration, which has adopted a more lenient stance toward the cryptocurrency industry.

According to Reuters, the SEC's move to dismiss the lawsuit aligns with its recent policy changes, including the establishment of a dedicated task force aimed at developing a clearer regulatory framework for digital assets. This shift indicates a departure from the previous enforcement-focused strategy, signaling a more collaborative approach between regulators and cryptocurrency platforms.

In addition to Coinbase, the SEC has recently dropped investigations and lawsuits against several other cryptocurrency exchanges and firms. Notably, the agency has ceased its nearly two-year lawsuit against Consensys, the developer of MetaMask, and has closed probes into Opensea and Robinhood's crypto unit. These actions suggest a broader trend of regulatory easing in the crypto industry under the current administration.

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This series of dismissals within a single week highlights the SEC's evolving approach to cryptocurrency regulation, focusing on creating transparent policies rather than pursuing enforcement actions. Also, the establishment of the Crypto Task Force further emphasizes the agency's commitment to engaging with industry stakeholders to develop a comprehensive regulatory framework for digital assets.