Coinbase recently announced that the Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against the cryptocurrency exchange. The case, filed in 2023, alleged that Coinbase was operating as an unregistered securities exchange and broker.
Coinbase CEO Brian Armstrong revealed in a video that the company spent $50 million in external legal fees to defend itself. However, the company believes it was a necessary investment to protect the crypto industry in the United States.
Armstrong stated that Coinbase’s deep pockets allowed them to engage in this lengthy litigation, which he believed was vital for establishing clear regulatory guidelines for the crypto sector. He emphasized that if other companies had not taken a similar stance, the SEC could have extended its authority over the entire industry.
Despite Coinbase’s legal victory, Armstrong stressed the need for legislation to codify favorable regulations for cryptocurrency. In his view, the U.S. risks falling behind other nations in adopting and regulating this emerging technology. The company remains optimistic about the future of crypto in the United States and its role in shaping the regulatory framework that will govern its growth.
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