Coinbase, the largest U.S. crypto exchange, just landed a seismic victory against the U.S. Securities and Exchange Commission (SEC).
The agency agreed “in principle” to dismiss its case against Coinbase, a decision that could reshape crypto regulation and put Ripple’s long-running legal fight next in the spotlight.
Here’s what happened, why it matters, and what the data tells us.
A Legal Breakthrough for Coinbase
The SEC and Coinbase reached an agreement on February 21, 2025, to drop the agency’s lawsuit, pending a formal vote by SEC commissioners next week.
The case, filed in June 2023, accused Coinbase of listing unregistered securities and operating as an unregistered broker, exchange, and clearing agency.
It targeted 13 tokens, including SOL, ADA, and MATIC, claiming they fell under SEC jurisdiction.
Coinbase pushed back hard, filing a Motion to Dismiss in August 2023, arguing the SEC overstepped its authority.
Now, the agency’s retreat marks a turning point. Coinbase CEO Brian Armstrong called it a “really good day” for the company and the 50 million Americans holding crypto, per his statement on X.
The numbers back up the stakes. Coinbase handles $153 billion in quarterly trading volume, per its latest reports, dwarfing many traditional financial platforms.
The SEC’s case threatened to choke that flow. Instead, the dismissal—pending approval—hands Coinbase a lifeline and a precedent-setting win.
Why the SEC Stepped Back
The shift comes amid a changing regulatory tide. Gary Gensler, the SEC’s former chair, left in January 2025, replaced by interim leadership like Mark Uyeda, known for a crypto-friendly stance.
The Trump administration, now in power, has signaled pro-crypto policies, aligning with this pivot.
Just this month, the SEC paused its lawsuit against Binance and dropped an appeal on crypto broker-dealer rules.
Data underscores the timing. Crypto ownership in the U.S. hit 50 million in 2024, up from 40 million in 2022, per Statista. Regulatory clarity matters more than ever.
Armstrong warned years of SEC overreach nearly crippled the industry, a sentiment echoed in his February 21 comments on X.
Ripple’s Turn in the Spotlight?
Could Ripple be next? The crypto community thinks so. The SEC’s lawsuit against Ripple, launched in 2020, centers on XRP’s status as a security.
A 2023 ruling by Judge Analisa Torres split the difference: institutional XRP sales violated securities laws, but programmatic sales to retail investors didn’t.
The SEC appealed in 2024, with Ripple’s response due April 16, 2025. XRP’s market cap stands at $32 billion today, per CoinMarketCap, and its fate hinges on this fight.
Ripple’s Chief Legal Officer Stuart Alderoty has predicted a resolution soon, citing the SEC’s recent acknowledgment of XRP ETF filings. Legal sources say the agency is prioritizing cases with tight deadlines—like Kraken’s, due March 31, 2025—over Ripple’s. The Coinbase deal could set a domino effect in motion.
