A federal judge has determined that the lawsuit filed by the US Securities and Exchange Commission (SEC) against cryptocurrency exchange Coinbase will proceed.
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The Judge has Rejected Coinbase's Motion
In June 2023, the SEC filed a lawsuit against Coinbase, alleging the operation of an unregistered crypto exchange and the offering of unregistered securities by the US-based company.
Judge Failla permitted the SEC's case to proceed, stating that the regulator adequately asserted that Coinbase functions as an exchange, broker, and clearing agency under federal securities laws. Additionally, the judge noted the involvement of Coinbase's Staking Program in the unregistered offer and sale of securities.
However, the court granted Coinbase's motion to dismiss the SEC's claims against Coinbase Wallet.
In response to the ruling, Coinbase's chief legal officer, Paul Grewal, expressed readiness for the case to progress, emphasizing the importance of uncovering the SEC's internal perspectives on crypto regulation. He also highlighted the court's acknowledgment that technological innovations like Coinbase Wallet do not necessarily implicate US securities laws.
Coinbase is now preparing to face the SEC in court, with both parties required to submit a proposed case management plan by April 19, 2024.
Following this development, cryptocurrency prices experienced a slight decline, with top altcoins such as Solana, Cardano, and Avalanche each seeing losses exceeding 3%.