Money Grab/Profit from his own market-moving decisions
SEC dismisses civil enforcement action against Coinbase
On February 27, 2025, the SEC moved to dismiss its civil enforcement action against Coinbase. The agency said the decision rested on regulatory reform, not on the merits. Coinbase paid no penalty and made no changes to its business.
What happened
In June 2023 the SEC sued Coinbase, the largest U.S. crypto exchange, alleging it operated as an unregistered securities exchange, broker and clearing agency. In March 2024 a federal judge in Manhattan let most of the case proceed.
On February 27, 2025, five weeks into the new administration, the SEC filed a joint stipulation with Coinbase to dismiss the case with prejudice as to the conduct alleged. Neither side paid costs or fees. Coinbase paid no penalty, made no business changes, and waived any claims against the SEC.
In press release 2025-47, Acting Chairman Mark Uyeda said the Commission’s crypto views had been expressed through enforcement without engaging the public. He said the dismissal would help the agency reform its approach while the new Crypto Task Force, formed January 21, 2025, did its work. The agency said the decision did not rest on any assessment of the merits. Commissioner Caroline Crenshaw dissented, calling it regulation by non-enforcement.
Who benefited
Coinbase exited a federal enforcement action with no penalty and no finding against it. More broadly, the crypto industry benefited, and the Trump family holds major stakes in it through World Liberty Financial and the $TRUMP coin. Coinbase is not a Trump-family company.
Who wanted something
Coinbase had a pending SEC case against it and had given $1 million to Trump’s inaugural committee. It had publicly argued for exactly this outcome. It got a dismissal with prejudice and no penalty rather than a negotiated settlement.
Who lost out
Investors and the public lost out, because the SEC enforces securities law on their behalf. It dropped a case a judge had allowed to proceed, without reaching the merits. Whether Coinbase broke the law was never decided.
Why it matters
The SEC dropped a case against the largest U.S. crypto exchange without ruling on whether the company had broken the law. It was part of a wider retreat from enforcement in a sector where the president’s family holds major stakes.