SEC Approves Coinbase After Financial Review

Coinbase receives SEC approval after a lengthy financial review, boosting confidence in the crypto sector.

Following a thorough review of Coinbase's financial disclosures, the US Securities and Exchange Commission (SEC) has decided that no changes or corrections were necessary.

Coinbase had begun the review process after launching its IPO in April 2021, and the completion represents a major milestone for the leading cryptocurrency platform.

Coinbase Removed from SEC's Blacklist

Coinbase's Chief Legal Officer, Paul Grewal, announced the positive developments with a post on X (formerly Twitter) on 15 April:

"Today I am pleased to share that we have fully resolved, without the need for any corrections or amendments, several comments related to our communications that the SEC had sent to us just over two years after we were approved for listing. As always, we remain focused on bringing the next billion users on-chain and building world-class products," said Paul.

Today I'm happy to share that we've fully resolved - without restatements or amendments - a number of comments related to our disclosures that @SECGov sent us a little over two years we were allowed to go public . As always, we remain focused on bringing the next billion onchain... pic.twitter.com/grLPAerGnF
- paulgrewal.eth (@iampaulgrewal) April 15, 2025

The SEC's Division of Corporation Finance has concluded its review of Coinbase's Form 10-K, which represents annual financial statements for the fiscal years ending December 31, 2022 and December 31, 2023, via a formal letter.

All publicly traded companies must file Form 10-K with the SEC, which is their primary annual financial statement. This document provides a detailed view of the company's operations and financial position, using audited financial statements, and is a crucial source for investors, analysts and regulators.

The SEC letter indicated that Coinbase will need to continue to maintain accurate disclosures as the audit concludes. The results of the review demonstrate a high level of confidence in Coinbase's financial practices, which should strengthen institutional trust in the digital asset exchange platform.

Coinbase received regulatory approval after another significant win in early 2025. On 27 February, Coinbase Inc. and Coinbase Global Inc. were informed by the SEC of the filing of a securities violations case. Observers interpreted this decision as part of a broader transformation in the regulation of digital assets in the US under the current government.

The SEC has shown a more permissive attitude since President Donald Trump took office, halting numerous investigations and prosecutions against companies in the crypto industry.

Persists Market Pressure Despite Regulatory Successes

Despite positive developments on the regulatory front, the COIN token continues to be tested by market headwinds. Since the beginning of the year, COIN has lost 29.2% of its value.

Coinbase posted its weakest quarterly results in Q1 2025 since the FTX bankruptcy in Q4 2022.

The decline in Coinbase's share price reflects broader challenges in the market, compounded by the economic impacts of tariffs imposed by the current government.
The new data showed COIN closed the day down 0.57%, continuing its decline with a further -1.61% during pre-market trading.

Although Coinbase maintains a solid regulatory position thanks to SEC approval, its share performance continues to suffer due to unfavourable market conditions.
The future of Coinbase, as well as the cryptocurrency industry as a whole, will be affected by both new emerging regulatory standards and general economic developments.