A federal judge has ruled that the US Securities and Exchange Commission (SEC) lawsuit against cryptocurrency exchange Coinbase will proceed. This decision was made by US District Judge Kathrine Failla on Wednesday, denying Coinbase’s motion to dismiss the case.
The SEC filed the lawsuit in June 2023, alleging that Coinbase operated an unregistered crypto exchange and offered unregistered securities. Judge Failla allowed the case to move forward, stating that the regulator had provided sufficient evidence that Coinbase operates as an exchange, broker, and clearing agency under federal securities laws. She also noted that through its Staking Program, Coinbase engages in the unregistered offer and sale of securities.
However, the court did grant Coinbase’s motion to dismiss the SEC’s claims against Coinbase Wallet. Coinbase’s chief legal officer, Paul Grewal, commented on the ruling, stating that they were prepared for this outcome and looked forward to uncovering more about the SEC’s internal views and discussions on crypto regulation. Grewal also expressed appreciation for the court’s understanding that technology innovations like Coinbase Wallet do not implicate US securities laws.
Coinbase will now prepare to meet the SEC in court, and the parties have until April 19, 2024, to submit a proposed case management plan. Following the news, crypto prices saw slight decreases, with top altcoins like Solana, Cardano, and Avalanche each experiencing losses of more than 3%. Bitcoin also slipped below $70k, and Ethereum hovered near $3,500.
In other news, the court documents reveal that the SEC has until April 30, 2024, to file an amended complaint against Coinbase. The exchange’s legal officer also mentioned that they will continue to work with the court to ensure a fair outcome for all parties involved.
Overall, the SEC vs. Coinbase case remains ongoing, and the crypto industry eagerly awaits the final ruling. To stay updated on the latest developments, be sure to check back for updates.
