US SEC Expected to Settle Lawsuit with Coinbase

The U.S. Securities and Exchange Commission (SEC) is preparing to conclude major cryptocurrency litigation initiated during the Biden administration.

According to the Wall Street Journal (WSJ) on the 14th (local time), the SEC informed the court that the lawsuit filed against Coinbase two years ago could reach a settlement soon. At the time, the SEC argued that cryptocurrency exchanges like Coinbase should comply with the same regulations as securities exchanges and brokers.

In a brief submitted to the Manhattan Appeals Court in New York, the SEC requested a 30-day extension for responding to Coinbase's appeal arguments, stating that "a new approach could lead to an amicable resolution of the lawsuit with Coinbase."

Meanwhile, Coinbase announced in its fourth quarter earnings report last Thursday that its revenue and profit had significantly increased compared to the previous year. The Trump administration's crypto-friendly stance raised investor expectations, triggering a post-election rally that acted as a positive catalyst.