## Coinbase Gets a Fresh Start as SEC Drops Lawsuit
Coinbase has received a significant boost as the U.S. Securities and Exchange Commission (SEC) has officially dropped its enforcement case against the popular crypto exchange. This decision marks a notable shift away from the SEC’s earlier position that most crypto tokens should be classified as securities requiring registration.
## Coinbase Lawsuit Dropped
On Thursday, the SEC made a formal request to dismiss its case against one of the largest crypto companies in the United States without prejudice, which means the regulator cannot revisit the case later. In a statement, the SEC explained, “The Commission’s decision to exercise its discretion and dismiss this pending enforcement action rests on its judgement that the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry, not on any assessment of the merits of the claims alleged in the action.” Although Coinbase had announced last week that the SEC had reached an agreement in principle to resolve the legal dispute, the commissioners still needed to vote to request a judge to dismiss the case. [Coinbase Tweet](https://twitter.com/coinbase/status/1895225038443552858)
The lawsuit against Coinbase originated in June 2023, just two years after the exchange went public. At that time, the SEC accused Coinbase of breaching U.S. securities laws by operating an unregistered exchange.
## New Task Force, New Rules
Following the departure of former chair Gary Gensler, who was known for his tough stance on crypto, the newly appointed temporary chair, Mark Uyeda, has begun to reshape the agency to adopt a more crypto-friendly approach. Uyeda has appointed fellow Republican Commissioner Hester Peirce to lead the SEC’s new crypto task force. “It’s time for the commission to rectify its approach and develop crypto policy in a more transparent manner. The Crypto Task Force is designed to do just that,” SEC Acting Chair Uyeda stated on Thursday.
This announcement represents the SEC’s first public comments explaining its recent decisions to conclude lawsuits and investigations involving several prominent players in the crypto industry, including Robinhood, Uniswap Labs, OpenSea, and Consensys. Experts are speculating that the regulatory agency may soon drop its controversial appeal in the Ripple case as well.
