A federal judge has ruled that the Securities and Exchange Commission’s (SEC) lawsuit against Coinbase, a popular cryptocurrency exchange, can proceed. The lawsuit alleges that Coinbase has been operating without proper registration, offering trading and staking services to the public without the necessary regulatory approvals.
Judge Katherine Polk Failla of the US District Court for the Southern District of New York delivered the decision, pushing forward the SEC’s case against Coinbase. While the court dismissed claims that Coinbase acted as an unregistered brokerage, it allowed other significant allegations to advance.
The outcome of this case could have far-reaching implications for the regulation of crypto exchanges. If the court ultimately agrees with the SEC’s stance that crypto exchanges require similar regulations as traditional securities exchanges, it could potentially narrow the variety of tokens accessible to investors and impose stricter disclosure requirements on trading platforms.
Coinbase has been given a deadline of April 19 to agree with the SEC on a case scheduling plan. This legal battle is part of the SEC’s broader trend of filing lawsuits against crypto firms, including a lawsuit against Ripple for alleged violations of securities laws.
Stay tuned for updates on this developing story as the legal battle between Coinbase and the SEC unfolds.
