Coinbase is poised for a landmark legal victory as the U.S. Securities and Exchange Commission (SEC) is expected to dismiss its lawsuit against the crypto exchange, according to analysts at H.C. Wainwright & Co.

The lawsuit, filed in June 2023, accused Coinbase of offering unregistered crypto securities and operating unlawfully as an exchange, broker, and clearing agency.

If finalized, this dismissal would eliminate a major regulatory burden on Coinbase, potentially boosting investor confidence and enabling business expansion. Analyst Mike Colonnese noted that Coinbase’s management expects final approval as early as next week.

Legal Costs and Expansion Prospects

The potential dismissal could significantly lower Coinbase’s legal costs, which have been a financial drag on the company. Analysts estimate that the resolution could save Coinbase upwards of $1 billion in long-term legal expenses.

Other key business benefits include:

• Expansion of Staking Services – Coinbase had scaled back its staking operations due to regulatory uncertainty. A dismissal would allow the company to expand this revenue-generating segment.

• New Crypto Listings – The company may accelerate listings of new cryptocurrencies, benefiting both transaction and subscription revenues.

• Improved Regulatory Clarity – A case dismissal could signal a broader shift in SEC policy, easing the regulatory climate for U.S.-based crypto firms.

Market Reaction and Stock Performance

Despite the positive news, Coinbase’s stock exhibited a mixed reaction. The stock opened 1% higher on Friday, reflecting initial optimism. However, it later slipped into negative territory amid industry-wide concerns following a major security breach at crypto exchange Bybit.

• Friday closing price: $235.37

• Day’s decline: -8.2%

• YTD performance: +120% (as of mid-February)

Analysts expected a stronger rally but believe the long-term impact will be positive as the company regains operational flexibility and investor confidence.

Coinbase’s anticipated SEC case dismissal represents a turning point for the company and the broader crypto sector. With regulatory uncertainty diminishing, the exchange is positioned for growth in staking, trading, and new listings—strengthening its leadership in the U.S. digital asset market.