Coinbase, in a post on its website and in a regulatory filing, said it had reached an agreement in principle with the S.E.C. to have the lawsuit withdrawn without any financial penalty. If the S.E.C. confirms the proposed settlement, it would be a remarkable reversal by the agency after years of legal battles against crypto firms. The S.E.C. sued Coinbase, the largest U.S. crypto company, in 2023 on the grounds that the digital currencies sold on its platform constituted unregistered securities that put consumers at risk of financial harm.
An SEC decision to completely abandon its accusations that Coinbase was running an unregistered exchange and listing unregistered securities will have deep ramifications for other agency crypto enforcement cases.
A source close to the commander-in-chief previously told The Post in November that the SEC under Gensler’s leadership “had gone rogue” as investors complained of “a turf war” with fellow regulator, the Commodity Futures Trading Commission.
