PANews reported on February 28 that Hester M. Peirce, a member of the U.S. Securities and Exchange Commission (SEC), issued a statement saying that the SEC has officially withdrawn its civil enforcement lawsuit against Coinbase and stated that it will not take further action on the case. Peirce made it clear that she never supported the case and criticized the SEC's previous practice of relying on enforcement actions to regulate the crypto industry, believing that this harmed the American public interest, hindered the development of the industry, and hindered the normal functions of the SEC's professional policy team.

Peirce pointed out that the SEC's widespread application of the Howey test has led to unclear regulation, making it difficult for compliant companies to operate, while criminals have taken advantage of regulatory gray areas to evade legal responsibility. In addition, due to the lack of a clear regulatory framework, many crypto companies are forced to spend a lot of resources on legal responses rather than product innovation. She believes that the SEC's previous practice of formulating policies through law enforcement not only misled the industry, but also prevented the policy team from effectively participating in the formulation of industry rules.

She emphasized that the SEC has established a "Crypto Task Force" to give the policy team leadership and work with the public to develop a regulatory framework for the crypto industry. The withdrawal of the lawsuit does not mean that the SEC has given up on law enforcement, but rather that future regulation will focus on policy making rather than relying solely on law enforcement actions.