Regulation
Court Dismisses SEC Coinbase Lawsuit With Prejudice
The United States Securities and Exchange Commission (SEC) has voluntarily dismissed its lawsuit with Coinbase Global Inc. over its alleged violations of Federal Securities laws. According to court filings, the case was dismissed with prejudice against the defendant(s).
Coinbase Leads US SEC’s Enforcement Turnaround
According to an X update from Inner City Press based on the court filing, all defendants are now discharged without costs under Rule 41(a)(1)(A)(ii) of the Federal Rules of Civil Procedure. This Coinbase and US SEC case closure was teased about a week ago, setting the new direction for enforcement actions relating to digital currency trading platforms in the industry.
Since the Coinbase versus US SEC case closure was teased, some related enforcement actions have also been closed without further actions. As reported earlier by CoinGape, the regulator has closed the Consensys lawsuit, showcasing a comprehensive shift in the new pro-crypto strategy.
This is a breaking news, please check back for updates!!!
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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The U.S. Securities and Exchange Commission (SEC) held a closed-door meeting on February 27, 2025, raising speculation about whether the agency will drop its appeal in the ongoing Ripple case.
The legal dispute, which began in December 2020, revolves around the SEC’s claim that Ripple sold XRP as an unregistered security. With growing regulatory scrutiny and political pressure, the crypto community is watching closely for any signs of resolution in the XRP lawsuit.
Will the SEC Dismiss XRP Lawsuit After Closed-Door Meeting?
The SEC’s Sunshine Act meeting focused on enforcement actions, administrative proceedings, and litigation settlements. While the agenda remains confidential, speculation is growing that the Ripple case was a topic of discussion. Recent decisions by the SEC to drop investigations into major crypto firms, including Coinbase and Uniswap, have fueled hopes that the XRP lawsuit may be nearing its conclusion.
Legal experts have mixed opinions on the SEC’s next move. Former SEC lawyer Marc Fagel downplayed the speculation, stating,
“There’s no more reason to think Ripple is on the agenda than at the last 200 meetings.”
However, pro-XRP attorney Bill Morgan remains confident in Ripple’s position, pointing out that the SEC’s legal argument has weakened after Judge Analisa Torres ruled in 2023 that XRP itself is not a security.
Cynthia Lummis Stance on SEC Dropping Lawsuits Against Major Firms
U.S. Senator Cynthia Lummis, a vocal advocate for cryptocurrency regulations, recently highlighted the need for legal clarity on digital assets. She stated, “Most digital assets are not legally securities under the Howey Test. The United States is behind other countries in creating laws for digital assets.”
Responding to Lummis’ statement, Bill Morgan referenced the Ripple case and Judge Torres’ ruling.
He wrote on X, “So you agree Judge Torres was correct in finding XRP itself is not a security in SEC v Ripple.” This exchange highlights the growing recognition among lawmakers and legal experts that the SEC’s classification of XRP may not hold up under legal scrutiny.
Moreover, the SEC has recently withdrawn several high-profile lawsuits, signaling a possible shift in its enforcement strategy. The agency voluntarily dismissed its case against Coinbase Global Inc and Consensys reached an agreement to dismiss the securities enforcement case related to MetaMask. Concurrently, the agency has also dropped cases against Uniswap, Gemini, OpenSea, Robinhood Crypto, and Binance’s case being paused for 60 days.
Potential Impact on XRP Price
The XRP lawsuit has had a strong effect on Ripple’s market standing. On February 28, XRP declined by 7.59%, following broader market trends with Bitcoin price falling below the $80k support. However, analysts believe that if the US SEC drops its appeal, XRP price could experience a major rally to $320.
Historical price trends show that legal victories for Ripple have led to significant gains. When Judge Torres ruled in Ripple’s favor in July 2023, XRP surged by over 70%. A full dismissal of the XRP lawsuit could push the token toward its previous all-time high of $3.55.
Market analysts are also discussing the potential approval of an XRP spot ETF, which could attract institutional investment especially with the agency acknowledging some XRP ETF’s last week. If the Ripple case is resolved, XRP may gain further regulatory clarity, making it more appealing to large financial firms.
While speculation around the SEC meeting continues, no official decision has been announced regarding the XRP lawsuit. The next key deadline is April 16, 2025, when Ripple must submit its reply brief related to the SEC’s appeal. If the SEC decides to withdraw its appeal before then, the case could effectively be resolved.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The United States Securities and Exchange Commission (SEC) has clarified that meme coins do not fall under federal securities laws. The agency stated that these digital assets are more like collectibles and are not subject to the regulations that apply to traditional financial instruments. However, the SEC warned that fraudulent activities related to meme coins could still lead to enforcement actions by other federal or state authorities.
US SEC States Meme Coins Are Not Securities
In a statement released on February 27, the SEC’s Division of Corporation Finance stated that meme coins do not qualify as securities under the Securities Act of 1933.
“It is the Division’s view that transactions in the types of meme coins described in this statement do not involve the offer and sale of securities under the federal securities laws,” the statement read.
The agency explained that meme coins do not provide any rights to future income, profits, or assets, which are key factors in determining whether an asset is a security. It also noted that meme coins do not generate yield and are primarily driven by market speculation and social trends.
The agency clarified that since meme coins do not meet the definition of securities, their issuers and traders do not need to register transactions with the agency. The statement emphasized that meme coin buyers and holders are not protected by securities laws.
SEC Warns of Fraud in the Meme Coin Market
Despite the clarification that they are not securities, the SEC warned that fraudulent activities in this sector could still face legal consequences. The agency noted that while it does not regulate meme coins under securities laws, other federal or state agencies may take action against deceptive practices.
Khurram Dara, a lawyer at Bain Capital Crypto, pointed out that misleading promotions, scams, and fraudulent schemes involving meme coins could still be prosecuted. The agency also stated that it would continue to monitor the crypto market for any potential violations of financial regulations.
“The offer and sale of meme coins do not involve an investment in an enterprise nor is it undertaken with a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others,” the statement added.
House Democrats Bill to Restrict Politicians
Before the SEC’s statement, House Democrats had announced plans to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act. The proposed bill seeks to prevent public officials, including presidents and their families, from launching or endorsing meme coins.
California Representative Sam Liccardo, who is leading the bill, stated that the legislation aims to stop political figures from profiting off meme coins. The move comes after President Donald Trump launched a meme coin named “TRUMP” shortly before taking office.
The TRUMP token saw rapid gains but later experienced a sharp decline, losing over 50% of its value in the past month. The market reaction led to concerns about political figures using meme coins for financial gain.
Crypto Industry Reacts to SEC’s Clarification
The statement has been welcomed by some members of the crypto industry who have long sought regulatory clarity. Ishmael Green, a crypto attorney at Diaz Reus law firm, said the decision could encourage more investment in the U.S. crypto market.
“This will drive continued investment in the U.S. crypto space, as the vast majority of meme coins launched in the last 12 months with multibillion-dollar market caps have been released on Solana, an American blockchain,” Green stated.
Major crypto exchanges, including Coinbase and Robinhood, saw a slight rise in their stock prices following the agency’s announcement. Market analysts believe that the clarification could allow exchanges to list more meme coins without the risk of regulatory enforcement.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Consensys and the U.S. Securities and Exchange Commission (SEC) have reached an agreement in principle to dismiss the securities enforcement case concerning MetaMask. The resolution is subject to the approval of the Commission, after which the SEC will file a stipulation with the court to officially close the case.
Consensys and US SEC To Dismiss MetaMask Lawsuit
According to a recent filing, the case against MetaMask marks the sixth crypto-related lawsuit that the SEC has decided to back down from. Consensys, the company behind MetaMask, expressed relief at the outcome.
Joseph Lubin, CEO of Consensys, stated,
“No company wants to be the target of agency enforcement, but at the same time, it was our duty and honor to stand up for blockchain software developers in the hour it was most needed.”
Lubin highlighted the firm’s commitment to defending blockchain developers and emphasized the importance of the case for the wider industry. He also praised Consensys’ legal team, led by Matt Corva, for their work on the case. Lubin expressed gratitude to the SEC’s new leadership for adopting a “pro-innovation, pro-investor path” and stated that Consensys would continue to engage with policymakers.
The dismissal of the MetaMask lawsuit is part of a larger pattern, as the SEC has recently backed off from other high-profile cryptocurrency cases. Legal actions against Coinbase, OpenSea, Robinhood, and Uniswap have also been dropped. These reversals suggest a shift in the SEC’s regulatory approach toward the cryptocurrency industry.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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