On February 21, Coinbase CEO Brian Armstrong announced that the Securities and Exchange Commission (SEC) had dropped a lawsuit against his company.
The lawsuit started on June 6, 2023, when the SEC accused Coinbase of operating as an unregistered securities broker. The SEC was concerned that the failure to register would lead to corruption and a lack of protection for customers of the crypto trading platform.
Prior to Trump’s second term, Coinbase was losing the legal battle. In March 2024, a federal judge rejected Coinbase’s attempt to dismiss the lawsuit, as they found the SEC’s claims to be plausible.
This reversal of fortunes was not coincidental. Coinbase and its heads took the following steps to ingratiate themselves within Trump’s orbit:
- During the 2024 election, Coinbase donated $75 million to a Trump-aligned, pro-crypto Super PAC, Fairshake.
- Paul Grewal, the Chief Legal Officer of Coinbase, attended multiple Trump fundraisers.
- Coinbase flattered Trump by offering him an “A” rating via the “Stand with Crypto Alliance.”
- The company financially contributed to his innaugration.
- Armstrong privately met with Trump at Mar-a-Lago, as well as JD Vance at a black-tie dinner.
- Chris LaCivita, one of Trump’s campaign managers, was hired by Coinbase to its Global Advisory Council.
- Coinbase immediately listed $TRUMP, Trump’s meme coin, making it easier for customers to purchase.
Armstrong admitted that the dismissal of the case was politicized.
I have to give credit here to the Trump administration, for winning the election, and for the departure of the activist head of the SEC, Gary Gensler, who orchestrated this unlawful action along with Elizabeth Warren, and a handful of their lackeys in congress. I feel confident we would have won this case in the courts either way, given our facts were so strong, but it certainly helped accelerate the process and drive accountability.
Brian Armstrong on X
