SEC Set to Dismiss Coinbase lawsuit: A Major Victory for Crypto
On February 21, Coinbase received good news. The U.S. Securities and Exchange Commission (SEC) plans to drop its lawsuit against the crypto exchange. This lawsuit, filed in June 2023, accused Coinbase of offering unregistered crypto securities and operating illegally. Analysts at H.C. Wainwright & Co. see this as a significant win for Coinbase and the crypto sector.
Mike Colonnese, an analyst, believes the case could be cleared soon. If approved, it would remove a major obstacle for Coinbase. The dismissal would signal a more crypto-friendly approach from the SEC. This could reduce legal costs and allow Coinbase to expand its business.
- Analysts expect reduced legal fees.
- Business expansion in staking and crypto listings.
- Potential acceleration of new crypto listings on coinbase.
Colonnese and dylan Scales noted that the dismissal could boost Coinbase’s staking business and lead to more crypto listings. this would increase subscription and service revenues.
Despite the positive news, Coinbase’s stock initially rose by 1% but later fell 8.2% due to a Bybit hack. The stock closed at $235.37 on Friday. Analysts expected a stronger positive reaction but the industry was spooked by the hack.
