The biggest cryptocurrency exchange in America, Coinbase, announced on Friday that the Trump administration has consented to dismiss a significant lawsuit that would have far-reaching effects on the cryptocurrency sector. It coincides with a pledge by the newly elected Trump administration to de-regulate virtual currencies like bitcoin.
In June 2023, Coinbase was sued by the Securities and Exchange Commission for allegedly operating as an unregistered broker. That same month, the SEC also brought a similar lawsuit against foreign rival Binance; last week, the two parties decided to put the matter on hold.
By operating as an exchange, broker, and clearing agency “without having registered any of those functions with the Commission as required by law, Coinbase allegedly generated billions of dollars illegally, according to the SEC’s lawsuit.
Coinbase stated that the SEC would impose no penalties or fines on the company, which is anticipated to approve the dismissal of its litigation next week. A request for comment from the SEC was not answered.
It is anticipated that Paul Atkins, Trump’s choice for SEC chair, will regulate cryptocurrency much less strictly than Gary Gensler, who oversaw the agency during the Biden administration. Despite his earlier dismissal of cryptocurrency as a fraud, Trump changed his mind throughout the campaign and declared his intention to embrace it. Trump signed an executive action to relax crypto rules on his third day in office.
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