SEC Poised to Drop Coinbase Lawsuit, COIN Shares Surge

The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its enforcement case against Coinbase, pending approval from the Commission's leadership, according to the company on Friday. This news triggered a surge in Coinbase shares, rising over 4.5%. The potential dismissal marks a significant moment for the U.S. crypto industry, which has faced enforcement by the agency. Robinhood, for example, had to delist tokens alleged to be securities in June 2023 but later relisted some, including Solana's SOL, after President Trump won the U.S. presidential election last year. A resolution could encourage exchanges like Robinhood to add more tokens, potentially increasing trading revenue. Coinbase became a publicly-traded company in April 2021 following a review of its business model and disclosures by the SEC. The company has incurred millions in legal expenses and staff hours during the legal battle. Coinbase's Chief Legal Officer, Paul Grewal, stated that the dismissal would be a victory for Coinbase, its customers, the United States, and individual freedom.