Coinbase Global, Inc. (Nasdaq: COIN) announced that it has reached an agreement in principle with the U.S. Securities and Exchange Commission (SEC) to dismiss its ongoing litigation. This agreement, still subject to approval by the SEC’s Commissioners, would result in the case being dismissed with prejudice.
The litigation originated in June 2023 when the SEC filed a complaint against Coinbase and its subsidiary, Coinbase, Inc., alleging violations related to operating as an unregistered securities exchange, broker, and clearing agency, as well as offering and selling unregistered securities through its Staking program. A ruling by the U.S. District Court for the Southern District of New York in March 2024 denied Coinbase’s motion to dismiss most of the SEC’s claims but dismissed allegations concerning Coinbase’s Wallet application.
Following an appeal process initiated by Coinbase in April 2024, the District Court certified an interlocutory appeal in January 2025, temporarily staying the proceedings. The SEC was granted an extension until March 14, 2025, to respond to Coinbase’s petition in the Court of Appeals.
Coinbase announced the agreement in principle on February 21, 2025, signaling a potential resolution to the legal dispute. The company has provided further details through its blog and social media channels, though it clarified that such information is not incorporated into its SEC filings.
Forward-looking statements in Coinbase’s report caution that the agreement is not yet final and remains subject to SEC approval. The company has stated it will not provide additional updates unless legally required.
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