Judge rules SEC vs. Coinbase case to proceed.
US District Judge Kathrine Failla however granted Coinbase’s motion on its wallet.
A federal judge has ruled that the US Securities and Exchange Commission (SEC) lawsuit against crypto exchange Coinbase will move forward.
US District Judge Kathrine Failla gave the ruling on Wednesday, with the court’s order denying Coinbase’s motion to dismiss the case.
Judge denies Coinbase motion
The SEC sued Coinbase in June 2023, alleging that the US-based company operated an unregistered crypto exchange and offered unregistered securities.
Judge Failla allowed the SEC’s case noting that the regulator had “sufficiently pleaded that Coinbase operates as an exchange, as a broker, and as a clearing agency under the federal securities laws, and, through its Staking Program, engages in the unregistered offer and sale of securities.”
The court however, granted Coinbase’s motion to dismiss SEC’s claims against Coinbase Wallet.
“Today, the Court decided that our SEC case will move forward on most of the claims, but dismissed the claims against Coinbase Wallet. We were prepared for this, and we look forward to uncovering more about the SEC’s internal views and discussions on crypto regulation,” Coinbase chief legal officer Paul Grewal said in a comment posted on X.
“We also appreciate the Court’s understanding that technology innovations like Coinbase Wallet do not and cannot implicate US securities laws,” Grewal added.
Coinbase will now prepare to meet the SEC in court, the exchange’s legal officer said. According to court documents, the parties now have until April 19, 2024 to submit a proposed case management plan.
Crypto prices fell slightly following the news. Top altcoins like Solana, Cardano and Avalanche saw losses of more than 3% each.
Bitcoin slipped below $70k while Ethereum hovered to near $3,500.
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