The U.S. Securities and Exchange Commission (SEC) has reached an agreement to dismiss its lawsuit against crypto exchange Coinbase, pending approval by the regulator, according to the firm's CEO Brian Armstrong.
Armstrong stated in a Twitter that they had reached an agreement. "hugely vindicating," The regulator is accused of using "mafia tactics" While pursuing their lawsuit against the exchange.
Armstrong also added that SEC was "wrong on the law," Its actions "could have killed the crypto industry in America."
Coinbase Chief Legal Office Paul Grewal Tweeted that "there will be no settlement or compromise—a wrong will simply be made right."
The SEC didn’t immediately reply to a comment request from Decrypt.
The SEC's lawsuit against Coinbase
The SEC, having earlier issued a Wells Notice, filed their complaint in June 2023. It was more than 100-pages long. In the lawsuit filed in New York’s Southern District, Coinbase was accused of operating an unregistered exchange for more than a decade.
The SEC made these allegations and also named a few altcoins, including Solana You can also find out more about the following: Polygon.
The full list includes: Binance’s BNB token, the exchange's sunsetted stablecoin, BUSD, and 10 other tokens: Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI (COTI).
The SEC filed similar allegations against Binance, its rival at the time of the 2023 suit.
Binance and SEC jointly filed a motion earlier this month to put a halt on their legal fight. The motion cites that the establishment of the new crypto task force under SEC Commissioner Hester Peirce may “impact and facilitate the potential resolution of this case.”
Armstrong alleged that the SEC was guilty of fraud when the Coinbase lawsuit in 2023 was filed. "exceeding the authority given to them by congress by asking us to delist a number of assets that were not securities," The exchange was argued to have taken place in a "conservative approach" To ensure it hasn’t listed any securities.
"We tried to 'come in and register' but it turned out it was a fake offer, as every crypto company discovered," he said.
Andrew Hayward edited the book
