The U.S. Securities and Exchange Commission on Thursday dismissed its civil lawsuit against crypto exchange Coinbase Global (NASDAQ:COIN) as the regulator pivots toward a softer stance on digital assets under the Trump administration.

A landmark legal battle for the U.S. crypto sector, the government accusation that Coinbase ran an unregistered exchange, has been entirely abandoned.

Coinbase is in the clear after the SEC followed through on its agreement and voluntarily dismissed its case against the crypto exchange.

The battle may be around setting rules for exchanges and establishing when tokens should be treated as securities or as commodities.

Coinbase debuted its stock on the Nasdaq in April 2021 after the SEC reviewed the crypto exchange's business model and S1 disclosures and allowed the company to go public. However, Coinbase said that changed two years later, when the SEC sued the company "despite absolutely nothing" changing in its business model.

According to Coinbase chief legal officer Paul Grewal, the US Securities and Exchange Commission (SEC) plans to drop its lawsuit against the largest US cryptocurrency exchange, as the agency shifts to embrace Donald Trump's new approach to regulating cryptocurrency in the US.

The U.S. Securities and Exchange Commission on Thursday filed to dismiss its lawsuit against Coinbase, the largest U.S. cryptocurrency exchange, putting an end to a legal battle as the regulator moves to change course under President Donald Trump.