Brian Armstrong says Coinbase spent $50M fighting SEC lawsuit — and beat it

Feb 23, 2025

Coinbase won a $50M SEC lawsuit, signaling potential crypto-friendly U.S. regulations.

Brian Armstrong says Coinbase spent $50M fighting SEC lawsuit — and beat it

: Coinbase announced that the SEC has agreed to drop its 2023 lawsuit, subject to approval, indicating a shift in regulatory attitude. The case claimed Coinbase operated illegally as an unregistered securities exchange. Despite spending $50M on external legal fees, CEO Brian Armstrong believed it was a necessary fight for the crypto industry. Armstrong stressed the importance of U.S. crypto legislation to remain competitive globally.

Coinbase recently revealed that the SEC has decided to dismiss its lawsuit against the company with prejudice, meaning it cannot be refiled. The dismissal signifies the potential for more crypto-friendly policies under the current administration compared to the era of Gary Gensler.

The lawsuit in question, initiated in 2023, accused Coinbase of operating as an unregistered national securities exchange, broker, and clearing agency. Coinbase countered the lawsuit by arguing that the SEC's rules on crypto were not sufficiently clear for legal action.

CEO Brian Armstrong mentioned in a video that despite the cost of $50 million in external legal fees, the fight was crucial for protecting the crypto sector in the United States. He further emphasized the need for legislation to establish favorable crypto regulations to maintain the U.S.'s competitive edge.