%Cryptocurrency exchange %Coinbase Global (NASDAQ: $COIN) says that the U.S. Securities and Exchange Commission (SEC) has dropped its enforcement case against the company.
The news sent shares of Coinbase Global up about 4% in premarket trading on Feb. 21.
In 2023, the SEC charged Coinbase with operating an unregistered securities exchange and for failing to properly register its crypto staking program.
The two sides had been embroiled in a difficult legal battle ever since, and the situation weighed on Coinbase’s stock, which has declined 13% in the past month.
The SEC’s decision to drop its case against Coinbase comes as the new administration of U.S. President Donald Trump adopts a more favorable view of %Cryptocurrencies.
Analysts say the move by the SEC will have long-term positive ramifications for other crypto enforcement legal cases and the industry as a whole.
Moving forward, oversight and enforcement of regulations and laws governing crypto is likely to shift to Congress and away from the SEC, say some analysts.
For Coinbase Global, the SEC lawsuit had cast a dark cloud over the company and its stock.
Many advocates of crypto saw the SEC’s action against Coinbase, the largest U.S. crypto exchange, as a shot across the bow of the entire sector.
Prior to today (Feb. 21), Coinbase Global’s stock was flat on the year (down 0.24%) and trading at $256.59 U.S. per share.
