The cryptocurrency exchange Coinbase said on Friday that the Securities and Exchange Commission had agreed to drop its lawsuit against the company, lifting a legal cloud over the global crypto industry and signaling a broader retreat by federal regulators.
Coinbase, in a post on its website and in a regulatory filing, said it had reached an agreement in principle with the S.E.C. to have the lawsuit withdrawn without any financial penalty. If the S.E.C. confirms the proposed settlement, it would be a remarkable reversal by the agency after years of legal battles against crypto firms.
The S.E.C. sued Coinbase, the largest U.S. crypto company, in 2023 on the grounds that the digital currencies sold on its platform constituted unregistered securities that put consumers at risk of financial harm.
Any settlement that results in a dismissal of the lawsuit would require S.E.C. approval. A spokesperson for the S.E.C. declined to comment on Coinbase’s announcement.
