SEC Drops the Coinbase Case: What Does It Mean for the Ripple Lawsuit?

Coinbase CEO Brian Armstrong announced that the SEC is dropping its 2023 lawsuit against the company. This means the SEC will not fine Coinbase or require it to change its business practices. While this is a positive outcome for Coinbase, the SEC's lawsuit against Ripple, which also deals with the classification of crypto assets as securities, is still ongoing. The SEC's argument against Coinbase was that certain crypto assets listed on the exchange were unregistered securities, giving it the power to demand delisting. In the Ripple case, the SEC alleges that Ripple's sale of XRP tokens was an unregistered securities offering. While the SEC's actions suggest it may eventually drop charges against Ripple, the case is more complex because a ruling against Ripple could impact many other token projects. The SEC is reportedly working on broader policy changes regarding crypto, including formally removing the "security" status from some tokens and reducing enforcement actions, which could positively influence the outcome of the Ripple case.