On 27 February 2025, the United States Securities and Exchange Commission (SEC) published Joint Stipulation to Dismiss, and Release to dismiss its civil enforcement action against Coinbase Inc. and Coinbase Global Inc.
The civil enforcement action, initially filed by the US SEC on 6 June 2023, accused Coinbase of operating as an unregistered securities exchange, broker, and clearing agency. The litigation progressed until 27 March 2024, when the United States District Court for the Southern District of New York granted, in part, Coinbase’s motion for judgment on the pleadings. On 7 January 2025, the court approved Coinbase’s request for an interlocutory appeal under 28 U.S.C. § 1292(b), allowing the company to challenge aspects of the ruling. However, with the launch of the US SEC’s Crypto Task Force on 21 January 2025, the Commission in the exercise of its discretion and as a policy matter, the US SEC decided that the dismissal of this case was appropriate and has opted to dismiss the case as a policy decision.
The US SEC explicitly clarified that the dismissal of the Coinbase case does not imply any position on the merits of the allegations. The Commission’s joint stipulation with Coinbase states: “The Commission’s decision to seek dismissal of this litigation does not reflect the Commission’s position on any other case.” Furthermore, the US SEC’s Cyber and Emerging Technologies Unit will continue efforts to investigate and address fraudulent activities within the crypto sector, particularly those involving blockchain technology.
Under the terms of the stipulation, Coinbase has agreed to withdraw its interlocutory appeal, originally filed under Coinbase, Inc. v. SEC, No. 25-145 (2d Cir.). Coinbase has waived any claims against the US SEC related to the enforcement action, including claims for attorney’s fees or costs incurred during the litigation.
Acting US SEC Chairman Mark T. Uyeda stated: “For the last several years, the Commission’s views on crypto have been largely expressed through enforcement actions without engaging the general public. 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.”
(Source: https://www.sec.gov/files/litigation/complaints/2025/stipulation-pr2025-47.pdf, https://www.sec.gov/newsroom/press-releases/2025-47)
