The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Coinbase, marking a significant shift in the agency’s approach to crypto regulation. Court filings from Feb. 27 confirm that the SEC has voluntarily withdrawn all litigation against Coinbase and its parent company, Coinbase Global, with prejudice—ensuring the case cannot be reopened.

This decision follows a Feb. 21 agreement between the SEC and Coinbase to end their legal dispute. The SEC stated that dropping the case would support its broader efforts to "reform and renew" its regulatory stance on the crypto industry.

Under former SEC Chair Gary Gensler, the agency aggressively pursued enforcement actions against crypto firms, often without clear regulatory guidelines. However, Acting Chair Mark Uyeda signaled a shift in strategy, urging the commission to adopt a more transparent policy framework. In a surprising move, the SEC established a Crypto Task Force on Jan. 21—just one day after President Donald Trump’s inauguration—under the leadership of Commissioner Hester Peirce, a known crypto advocate.

Coinbase had been battling the SEC since June 2023 when the regulator accused the exchange of operating as an unregistered broker, exchange, and clearing agency. The lawsuit also claimed Coinbase was offering securities without proper disclosure, listing tokens such as Solana, Cardano, Polygon, and Filecoin. Coinbase’s legal team, led by Chief Legal Officer Paul Grewal, consistently pushed back, arguing that the case was an overreach, especially since the SEC had previously approved the company’s public listing on Nasdaq in 2021.

The SEC’s decision to drop the case comes after similar dismissals involving Consensys, Robinhood, Gemini, Uniswap, and OpenSea. This signals a potential regulatory reset that could shape the future of crypto oversight in the U.S.