SEC Suit Against Coinbase Can Go Forward, Judge Rules
- Judge says Coinbase offers unregistered securities under law
- Ruling is a victory for SEC effort to regulate cryptocurrency
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The US Securities and Exchange Commission can proceed with its lawsuit against Coinbase Inc., the biggest US cryptocurrency-trading platform, claiming the company failed to register as a securities business, a federal judge in New York ruled.
The SEC adequately alleged that Coinbase engages in the “unregistered sale and offer of securities” and illegally operates as an exchange, a broker and a clearing agency under federal securities laws, US District Judge Katherine Polk Failla said in her opinion Wednesday.