Analyst Summary
- Coinbase reached an agreement in principle with the SEC Staff to dismiss the Litigation with prejudice, subject to the approval of the SEC’s Commissioners.
- The Litigation involves allegations that Coinbase, Inc. acted as an unregistered securities exchange, broker, and clearing agency in violation of the Securities Exchange Act of 1934.
- The District Court previously denied Coinbase judgment on the pleadings with respect to the SEC’s claims regarding Coinbase’s digital asset platform, Prime services, and Staking services.
- The District Court granted Coinbase judgment on the pleadings with respect to the SEC’s claims under the Exchange Act regarding Coinbase’s Wallet application.
- Coinbase filed its petition for interlocutory appeal in the Court of Appeals on January 17, 2025.
Potential Implications
Stock Price
- The resolution of the SEC litigation could positively impact the stock price due to reduced regulatory uncertainty.