Court ruling allows SEC to continue with lawsuit against Coinbase

Coinbase’s attempt to have the United States Securities and Exchange Commission’s (SEC) case against them dismissed has been rejected by a U.S. court. The decision, made by U.S. District Judge Katherine Failla, means that the SEC can proceed with its lawsuit against the exchange. The SEC claims that Coinbase is operating as an unregistered exchange, broker, and clearing agency. Court documents from March 27 reveal that the SEC initially sued Coinbase in June 2023, alleging that the exchange violated federal securities laws by listing 13 tokens that were deemed to be securities. Coinbase had hoped to have the case dropped by challenging the SEC’s authority over crypto exchanges. However, the court ruled against Coinbase, stating that similar transactions had previously been classified as securities transactions. The court also noted that Coinbase had not registered with the securities regulator. Both parties have been instructed to submit a proposed case management plan by April 19, as stated in the court documents.