Coinbase Stock Falls. The SEC Is Giving Up Its Case Against the Crypto Exchange. — Barrons.com

Adam ClarkCoinbase Global shares were dropping early Friday after the cryptocurrency exchange said the Securities and Exchange Commission was ready to drop its lawsuit against the company.Coinbase said Friday that enforcers at the SEC will recommend dismissal of a two-year-old lawsuit which sought to regulate the company as a stock exchange."SEC staff have agreed to dismiss their case against us (pending Commission approval)," the company said in a post on social-media site X.Coinbase shares were dropping 0.8% in early trading, after gaining more than 4% in the premarket.The relatively muted reaction is likely due to the market having expected the SEC to abandon the case following the election of President Donald Trump, who has embraced crypto.Dismissing the Coinbase lawsuit still requires a commission vote. The company expects that to happen next week, according to Coinbase's chief legal officer Paul Grewal, The Wall Street Journal reported.The SEC declined to comment on Coinbase's statement.Write to Adam Clark at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.