A federal court has determined that the case filed by the US Securities and Exchange Commission (SEC) against cryptocurrency exchange Coinbase will continue.
US District Judge Kathrine Failla ruled in favor of the SEC’s action, affirming that Coinbase functions as an exchange, broker, and clearing agency according to federal securities laws.
Additionally, the judge found that Coinbase is involved in the unregistered offer and sale of securities via its Staking Program. Nevertheless, the court approved Coinbase’s request to dismiss the Securities and Exchange Commission’s allegations against Coinbase Wallet.
Paul Grewal, the chief legal officer of Coinbase, said that the court ruled in favor of advancing the majority of the claims, while dismissing the allegations against Coinbase Wallet.
Coinbase will now commence preparations for its legal encounter with the Securities and Exchange Commission (SEC) and is required to present a proposed case management strategy by April 19, 2024.
After the verdict, there was a modest decline in crypto values, with prominent alternative cryptocurrencies such as Solana, Cardano, and Avalanche seeing losses over 3% apiece.
