The US Securities and Exchange Commission (SEC) will withdraw its lawsuit against Coinbase, ending a legal dispute that began in 2023.

The lawsuit accused Coinbase of allowing trading in 13 crypto tokens that should have been registered as securities and questioned its staking program’s compliance with regulations.

Coinbase has consistently argued that crypto assets do not fit the legal definition of securities.

The SEC’s decision reflects a shift in its approach to cryptocurrency regulation under acting Republican leadership.

Changes include reorganizing the crypto enforcement unit, creating an industry task force, and reversing previous accounting guidance.

Recent Coinbase developments