The SEC has agreed in principle to dismiss its lawsuit against Coinbase, marking a major legal win for the exchange and a turning point for US crypto regulation.

The United States Securities and Exchange Commission (SEC) has agreed to dismiss a lawsuit against Coinbase, which had accused the cryptocurrency exchange of operating as an unregistered securities broker.

According to a statement from Coinbase, the dismissal remains subject to final approval by an SEC commissioner before it is officially withdrawn.

Coinbase CEO Brian Armstrong highlighted the significance of the decision, stating:

“If this goes through, it’s a really big deal, not just for us, but for the whole crypto industry. The 50 million Americans who hold crypto, and I think for the rest of the world because this is an important signal about where things are going.”

The SEC sued Coinbase in June 2023 amid a torrent of litigation against the crypto industry, attempting to frame many firms and projects as either unregistered securities brokers or securities in and of themselves, placing heavy regulatory and financial pressure on the industry.

Related: SEC acknowledges slew of crypto ETF filings as reviews, approvals accelerate