The Securities and Exchange Commission (SEC) has reached a significant decision in the ongoing legal battle with Coinbase, one of the leading cryptocurrency exchanges in the United States. In a major win for the exchange, the SEC has agreed in principle to dismiss its lawsuit against Coinbase, signaling a turning point in the regulation of cryptocurrencies in the US.

The lawsuit, which was filed by the SEC in December 2020, accused Coinbase of offering unregistered securities in the form of its lending program. The program, which allows users to earn interest on their cryptocurrency holdings, was set to launch in the fall of 2021. However, the SEC argued that the program violated securities laws and demanded that Coinbase halt its plans.

This legal battle has been closely watched by the crypto community, as it could set a precedent for how cryptocurrencies are regulated in the US. Many feared that a ruling against Coinbase could have a chilling effect on the industry and hinder its growth. However, with the SEC now agreeing to dismiss the lawsuit, it seems that the agency is taking a more favorable stance towards cryptocurrencies.

Coinbase’s CEO, Brian Armstrong, expressed his relief and gratitude in a recent blog post, stating that the dismissal of the lawsuit is a “big win for crypto and the entire industry.” He also noted that the SEC’s decision to drop the case shows that the agency is willing to work with the industry to find a path forward for crypto regulation.

This news has been met with enthusiasm by the crypto community, with many seeing it as a positive step towards greater acceptance and legitimacy for cryptocurrencies in the US. It remains to be seen how this decision will impact future regulations and policies surrounding cryptocurrencies, but for now, it is a significant victory for Coinbase and the industry as a whole.