The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Coinbase (COIN). This shows us that huge changes are taking place in the SEC’s regulatory stance on crypto. According to court filings, the SEC filed a voluntary dismissal on Feb. 27, permanently ending all litigation tied to Coinbase and Coinbase Global. This includes dropping its initial June 2023 lawsuit and withdrawing its appeal with the U.S. Court of Appeals.
Crypto Regulation Changes
This move follows a broader pattern of the SEC retreating from legal battles against crypto firms. Over the past week, the agency has also dropped lawsuits against Consensys, Robinhood (HOOD), Gemini, Uniswap (UNI-USD), and OpenSea. According to SEC acting chair Mark Uyeda, the decision reflects a need to “rectify its approach” and create crypto policies through more transparent regulation, rather than legal action.
Coinbase Fought Back and Won
Coinbase had strongly pushed back against the lawsuit, arguing that the SEC was overreaching its authority. The case, filed in June 2023, alleged that Coinbase operated as an unregistered broker and offered securities such as Solana (SOL-USD), Cardano (ADA-USD), and Polygon (MATIC-USD) without proper disclosure. However, Coinbase maintained that the SEC’s actions contradicted its approval for public listing on Nasdaq in 2021.
Is Coinbase Stock a Good Buy?
Analysts remain cautiously bullish about COIN stock, with a Moderate Buy consensus rating based on 10 Buys and 12 Holds. Over the past year, COIN has increased by 3.8%, and the average COIN price target of $348.50 implies an upside potential of 67.3% from current levels.
