Coinbase, the cryptocurrency exchange that has become a political force through massive election spending in the 2024 cycle, has gotten a win from the Trump administration: the Securities and Exchange Commission is withdrawing a lawsuit against the company that had alleged it was operating an unregistered securities exchange.
In a post celebrating the decision, Coinbase cited the change in “political leadership at the SEC” for the 2023 lawsuit being dropped.
The announcement is another sign from the Trump administration that it will go easier on the cryptocurrency industry, which has become a huge source of political cash in federal elections, mainly for Republicans.
Coinbase has worked to cozy up to Trump since the election. In November, its CEO Brian Armstrong met privately with Trump at Mar-a-Lago, reportedly to discuss personnel appointments. On December 2, the company donated $1 million to President Trump’s inauguration. In late January, Coinbase brought on Trump’s campaign co-manager Chris LaCivita as a member of its Global Advisory Council.
The company’s chief legal officer Paul Grewal attended multiple Trump fundraisers before the November elections, according to CNBC. As the election results were rolling in, Grewal posted on X, “I hope @SECGov understands what has happened tonight…Stop suing crypto.”
