SEC discontinues important proceedings against Coinbase

The US Securities and Exchange Commission has closed an important investigation against the crypto exchange Coinbase: The proceedings opened by the US Securities and Exchange Commission (SEC) in 2023 against the service provider for allegedly trading in unregistered financial products.

The authority has announced that it has reached an agreement with the companies concerned, Coinbase Inc. and Coinbase Global Inc. to discontinue the proceedings. Further details of the agreement are not specified. However, according to Coinbase CEO Brian Armstrong, the company will not have to endure any fines or changes to its business. Armstrong had jumped the gun a week before the official announcement by the SEC, announcing the end of the proceedings on a US television station and on social media.

SEC chief plans change of course

The new head of the SEC, Mark T. Uyeda, is signaling a change of course for the agency. In the past, the SEC has expressed its views on cryptocurrencies primarily through measures to enforce laws, largely in private. Now his institution wants to adjust its own course and act more transparently in future. In view of the outstanding work of the SEC's new Crypto Task Force, the current proceedings against Coinbase will be discontinued.

According to Uyeda, the Crypto Task Force was set up to create more clarity on the application of applicable laws in the cryptocurrency market and to develop measures that promote innovation and protect investors. This is seen as a very positive signal in the industry. Uyeda himself is also open to digital currencies. This is probably one of the reasons why US President Donald Trump appointed him as the new head of the SEC after his election. Trump himself has undergone a crypto change of heart, so to speak. While he described the technology as a "scam" during his first term in office, he even launched his own - not seriously intended - cryptocurrency when he took office for the second time.

Trump's change of stance, like the proceedings against Coinbase, was closely followed by the entire industry. This is because it also involved the fundamental questions: What should cryptocurrencies actually be defined as in the USA? And which law applies as a result? The Crypto Task Force will now provide answers that crypto players expect to be as business-friendly as possible.

(nen)