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Coinbase’s Legal Challenge with SEC Paused Pending Approval
Coinbase has announced that the Securities and Exchange Commission (SEC) will halt its enforcement actions against the cryptocurrency exchange, a decision that is now awaiting the endorsement of the commission’s members.
In response to the news, Coinbase’s share price experienced a 4% increase in premarket trading.
Last year, the SEC charged Coinbase for allegedly operating an unregistered securities exchange and for not appropriately registering its crypto staking program. These proceedings were initiated under the leadership of former SEC Chair Gary Gensler. However, the current regulatory environment appears poised for change with President Donald Trump and Paul Atkins, the nominee for SEC Chair, indicating a potentially more favorable approach towards the cryptocurrency sector.
Brian Armstrong, the co-founder and CEO of Coinbase, communicated his enthusiasm for this development during an appearance on CNBC’s “Squawk Box.” He described the suspension of the case as a “huge day” not only for Coinbase but also for the broader cryptocurrency industry.
Armstrong noted, “I think it’s a really important signal that, after a small group of activists in this prior administration who tried to unlawfully attack this industry, we’re going to be able to turn the page on that and finally get some regulatory clarity in America.”
The SEC has not yet issued any comments regarding this development.
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