Coinbase Coin.o said on Friday that the American securities regulator planned to withdraw his trial against the Crypto Exchange, ending a controversial legal battle of another years considered by existential for the trading platform and the sector wider.
The Securities and Exchange Commission quickly devoted to the revision of its approach to the police in the cryptography sector under republican leadership since President Donald Trump took office. The agency has created a dedicated and canceled working group of accounting guidelines related to cryptography.
The dry, which refused to comment, should examine the legal affairs pending and start its dispute over before revising its regulations, reuters previously reported. However, the decision to recommend rejecting his trial against Coinbase, one of the numerous proceedings brought under the previous president of the SEC, would be the most dramatic decision to date under the interim republican direction.
“The war against crypto, at least as it applies to Coinbase, is over,” said Coinbase Legal Director Paul Grewal in an interview.
In a blog article, the exchange said that the SEC staff had “agreed in principle” to reject the case, although the final decision has not yet been elected by the Commission.
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The Republican officials of the SEC immediately began to revise the cryptographic policies of the agency, even before the arrival of Paul Atkins, the cryptographic choice of Trump for the president of the SEC.
Revisiting affairs against cryptographic companies – in particular those which violated the rules of the SEC but were not allegedly alleged to frauds – has been widely planned, although many legal experts told Reuters that they expected To the fact that the dry requires regulations and any mass effort to reject all the current issues to be considered unprecedented.
The SEC continued both Coinbase, the largest American Binance in Crypto, and the rival trading platforms in 2023. A court separated the agency’s trial against the other company after a request for the SEC and Binance, citing the implications of the new processing force.
The agency also continued Crypto Exchange Kraken in 2023.
The SEC allegedly alleged that Coinbase flouted its rules and facilitated trade in at least 13 cryptographic tokens which, according to him, should have been recorded as titles.
The trial has also targeted the Coinbase “stripe” program, in which he pools assets to check the activity on blockchain networks and takes commissions, in exchange for “rewards” to customers. The SEC said the program should have been registered with the agency.
Coinbase argued that cryptographic assets, unlike stocks and obligations, do not meet the definition of an investment contract, a position held by the vast majority of the cryptography industry. As indicated in a case of the United States Supreme Court, a key test to know if an investment product is a guarantee is whether people invest in a joint company awaiting profit.
Better markets, which defends the surveillance of the government of the more strict government in the financial sector, said that the SEC abandoning its trial against Coinbase would be “a historical error”.
“SEC used to enforce the law without fear or favor, but now promotes cryptographic industry and fears the Cryptographic King-Pavés billionaires who publicly lower the agency,” said Dennis Kelleher, president and chief of the group management, in a press release.
Coinbase shares have opened more than 3.5% while investors have applauded the news. Piper Sandler analysts said in a research note that the rejection of the case “removes a significant overhang which, in our view, has maintained certain investors on the sidelines for almost two years”.
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‘Arm in arms’
Gary Gensler, the former president of the Democratic Agency, had made bad behavior in an area he called the “far west” a priority for the dry, targeting not only fraudsters but also large companies that facilitate the trade such as Coinbase. The regulator has increased the size of the crypto application unit as part of this effort.
The SEC has now reduced this effort to apply the crypto, reaffirming lawyers and earlier this week, reversing the unit to focus on “Cyber and emerging technologies”.
The acting president Mark Uyeda and his colleague republican commissioner Hester Peirce challenged the approach of peopleler in terms of dispute, rather pleading for new rules specific to crypto.
“We have a very positive and productive relationship with this new dry and work (in) a locking step with them, arm in their arm, to send it,” said Grewal.
Peirce, nicknamed “Crypto Mom” by many in the sector, leads the new efforts of the agency to revise its policy. The new working group has held at least eight meetings to discuss changes, according to public newspapers available on the SEC website.
“I would not be surprised to see major cases resolved in the next two months,” said Richard Levin, president of Fintech at Nelson Mullins Riley & Scarborough. . “”
During his first week in power, Trump ordered the creation of a cryptocurrency working group responsible for offering new regulations on digital assets and exploring the creation of a national stock of cryptocurrency, This is due to his promise to quickly revise crypto policy.
Trump on the campaign campaign is committed to being a “president of cryptography” and courted the money in the industry by promising to promote the adoption of digital assets.
In a decree, Trump also ordered that banking services for cryptographic companies are protected, referring to the affirmations of the industry that US regulators have ordered lenders to reduce crypto companies in banking services – what regulators deny.
Report by Hannah Lang and Chris Pretice in New York; Edition by Jamie Freed, Chizu Nomiyama and Franklin Paul
