- Judge rules to let SEC v. Coinbase case proceed.
- Us However, District Judge Kathrine Failla granted Coinbase’s motion for the wallet.
A federal judge has ruled that the U.S. Securities and Exchange Commission (SEC) will pursue a lawsuit against cryptocurrency exchange Coinbase.
U.S. District Judge Kathrine Failla issued her ruling Wednesday, in which the court denied Coinbase’s motion to dismiss the case.
Judge Denies Coinbase Consent
The SEC sued Coinbase in June 2023, alleging that the U.S.-based company operated an unregistered cryptocurrency exchange and offered unregistered securities.
Judge Failla allowed the SEC’s argument, saying the regulator “sufficiently asserted that Coinbase operates as an exchange, broker and clearing house under the federal securities laws and engages in unregistered offers and sales through its staking program.” of securities.”
However, the court granted Coinbase’s motion to dismiss the SEC’s claims against Coinbase Wallet.
“The court today decided that the SEC case will proceed on most of the claims, but dismissed the claims against Coinbase Wallet. We’ve been prepared for this and look forward to discovering more about the SEC’s internal views and discussions on cryptocurrency regulation.” Paul Grewal, Coinbase’s chief legal officer, said in a comment. Posted At X.
“We also appreciate the court’s understanding that technological innovations like Coinbase Wallet do not and cannot implicate U.S. securities laws.“Grewal added.
Coinbase will now prepare to face the SEC in court, the exchange’s legal representative said. Both sides now have until April 19, 2024 to submit a proposed case management plan, according to court documents.
Cryptocurrency prices fell slightly following the news. Top altcoins like Solana, Cardano, and Avalanche each lost more than 3%.
Bitcoin fell below $70,000 and Ethereum hovered near $3,500.