US SEC Dismisses Lawsuit Against Crypto Exchange Coinbase

The US Securities and Exchange Commission (SEC) on February 27, 2025 dismissed its lawsuit against crypto exchange Coinbase. In recent days, the SEC had dropped lawsuits against Consensys, Robinhood, and Gemini.

The SEC agreed to voluntarily dismiss all litigation tied to Coinbase and Coinbase Global with prejudice, which included withdrawing from its initial June 2023 lawsuit and its request for an interlocutory appeal with the US Court of Appeals. The development comes after the two parties announced an agreement to end the legal dispute on February 21, 2025.

The SEC said that “the dismissal will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry”.

The SEC had adopted a strict regulation-by-enforcement approach to crypto under former SEC Chair Gary Gensler. It saw Coinbase and other industry heavyweights hit with unexpected lawsuits.

“It’s time for the Commission to rectify its approach and develop crypto policy in a more transparent manner,” SEC acting chair Mark Uyeda said.

Founders Fund Partner Accuses SEC Of Pressuring Exit From Crypto Industry

Joey Krug, partner of venture capital firm Founders Fund has alleged that the US SEC had bullied them into settlements and prohibited them from operating in the crypto industry.

Addressing the ETHDenver event on February 27, 2025, Krug accused former SEC Chair Gary Gensler’s regime of including non-disparagement provisions in these deals and suppressing public conversation. He attributed this to “Operation Chokepoint 2.0,” a supposed crypto-depression effort as covered by cointelegraph.com.

Krug insisted that no laws were violated and the SEC hadn’t sent the cases to the US Department of Justice either.

The revelation has now rekindled fears of overregulation. Some members of the US Congress are calling for decentralised finance (DeFi) creators to come before Congress and testify. The row has also evoked heightened conflict between regulators and the crypto sector, with questions over fairness and the future of DeFi in the US.

Arizona’s Crypto Reserve Bills Advance Towards Becoming Law

Arizona’s Senate has moved forward with two cryptocurrency reserve bills, bringing them one step closer to law.

The Strategic Digital Assets Reserve Bill (SB 1373) and the Strategic Bitcoin Reserve Act (SB 1025) both passed their third reading on February 27, 2025 and will now proceed to the state’s House of Representatives. SB 1373, sponsored by Senator Mark Finchem, introduces a state-run crypto reserve fund, while SB 1025, sponsored by Senators Wendy Rogers and Jeff Weninger, permits public funds to be invested in Bitcoin.

Arizona and Utah, which lead 18 states that are weighing such legislation, are followed by Montana, Wyoming, and Pennsylvania, which have rejected crypto reserve bills. Increasing support for state Bitcoin reserves is a nod to US President Donald Trump’s pro-crypto approach. As the states continue to move forward, the argument about government-supported Bitcoin reserves has become more heated, mirroring the split in US crypto policy.