SEC and Coinbase Agree to Dismiss Enforcement Action

The SEC entered into a joint stipulation with Coinbase, Inc., and Coinbase Global, Inc., to dismiss the civil enforcement action with prejudice against the two firms.  

The joint stipulation included a statement that the decision to seek this dismissal "does not necessarily reflect the Commission's position on any other case."  

In an SEC release, Acting Chair Mark T. Uyeda said: "It's time for the Commission to rectify its approach and develop crypto policy in a more transparent manner. The [recently launched] Crypto Task Force is designed to do just that."

SEC Commissioner Hester M. Peirce, head of the Crypto Task Force, noted her previous objection to the enforcement action against Coinbase, calling it part of the SEC's "regulation-by-enforcement strategy." She said this strategy hampered SEC policy staff from developing a proper regulatory framework for crypto.

SEC Commissioner Caroline A. Crenshaw criticized the Commission's decision to dismiss the enforcement action, arguing that while the law may change to legalize activities that were previously illegal, this does not justify past misconduct. She also emphasized various crimes in the crypto market, including fraud and money laundering.