The U.S. Securities and Exchange Commission (SEC) has reached an agreement to dismiss its lawsuit against the cryptocurrency exchange Coinbase. However, the final decision depends on the regulator’s vote, which is expected next week. Coinbase CEO Brian Armstrong called this development “hugely vindicating.”

In a tweet, Armstrong criticized the SEC’s actions, accusing the regulator of using “mafia tactics” in its case against Coinbase. He also stated that the SEC was “wrong on the law” and that its actions could have severely harmed the cryptocurrency industry in the United States.

Coinbase’s Chief Legal Officer, Paul Grewal, confirmed that there would be “no settlement or compromise” and that the case dismissal would correct a wrongful accusation.

The SEC has not yet issued an official comment on the matter.

The SEC Lawsuit Against Coinbase

In June 2023, following a Wells notice issued earlier that year, the SEC filed a more than 100-page complaint against Coinbase. The lawsuit, submitted to the Southern District of New York, alleged that Coinbase had been operating as an unregistered securities exchange for a decade.

As part of its claims, the SEC specifically named several altcoins, including Solana (SOL) and Polygon (MATIC), as unregistered securities. The full list included Binance’s BNB token, the now-discontinued BUSD stablecoin, and 10 other cryptocurrencies: Cardano (ADA), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI (COTI).

At the time of the lawsuit, the SEC had also filed similar charges against Binance, Coinbase’s competitor. However, earlier this month, Binance and the SEC jointly requested to pause their legal proceedings. This decision was linked to the establishment of a new crypto task force under SEC Commissioner Hester Peirce, which could potentially influence the resolution of the case.

When the lawsuit was initially filed, Brian Armstrong accused the SEC of exceeding its authority by demanding that Coinbase delist certain assets that, according to the company, were not securities. Armstrong maintained that Coinbase had always taken a cautious approach to listing cryptocurrencies to ensure compliance with regulations.

“We tried to ‘come in and register,’ but it turned out to be a fake offer, as every crypto company discovered,” Armstrong stated.