The court dismissed the SEC's lawsuit against Coinbase, but it's too early to rejoice
The judge sided with Coinbase on the issue of the exchange's cryptocurrency wallet. However, the SEC was allowed to file another lawsuit against the site
Today, on March 27, a court hearing was held in the case of the American crypto platform Coinbase. The U.S. Securities and Exchange Commission (SEC) accuses the site of lack of registration and illegal offering of securities.
The Manhattan court's decision partially satisfied Coinbase's motion to dismiss the SEC's lawsuit. In particular, Judge Catherine Polk Filla did not accept the regulator's statement regarding the exchange's crypto wallet.
According to the Commission, Coinbase Wallet is an unregistered broker. It follows from the latest resolution that the wallet complies with existing legislation and can continue to operate. The non-custodial service of the exchange will no longer appear in the case.
However, on two other issues, the judge sided with the SEC. As part of the next court sessions, a case will be considered according to which Coinbase did not register as a company that deals with securities.
"The court concluded that because the well—worded allegations of the complaint strongly support the SEC's contention that Coinbase acted as an unregistered securities intermediary, the defendants' motion should be denied," the court documents said.
In addition, the judge also agreed with the arguments of the regulator regarding the Coinbase staking program. Through this program, Catherine Filla claims, the crypto exchange was indeed engaged in the unregistered offering and sale of securities.
Both sides must submit a "proposed business plan" by April 19.
