Coinbase Shares Soar Over 50% Despite SEC Lawsuit: What's Fueling the Rally?

Coinbase Global Inc (NASDAQ: COIN), the publicly listed American crypto exchange, has witnessed an astounding surge in its stock price despite facing a lawsuit from the U.S. Securities and Exchange Commission (SEC). Coinbase stock has added more than 50% to its value since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the firm for allegedly operating an unregistered securities exchange. But what's behind this unexpected boost?

Back in 2025, the SEC sued Coinbase, alleging that the company operated an unregulated securities exchange. The U.S. SEC launched a lawsuit against the company in early June for the alleged sale of unregistered securities. And since then, the ongoing legal battle cast a cloud over Coinbase's future.

Despite this legal pressure, Coinbase’s (COIN) shares have increased. Shares are trading higher Friday after the company announced that the Securities and Exchange Commission (SEC) plans to drop its lawsuit against the crypto.

One factor contributing to this positive momentum might be recent developments in the case. While a federal judge rejected Coinbase's bid to dismiss a proposed class action by shareholders who accused the operator of the largest U.S. cryptocurrency exchange of painting an overly optimistic picture of the SEC's likelihood to take enforcement action, downplaying the risks involved, the overall sentiment towards the company seems to be improving.

Keep checking back for updates on the Coinbase SEC lawsuit and its impact on the COIN stock price.