Coinspeaker
US Court Rules Coinbase Must Face SEC’s Lawsuit

A court in the United States has ruled that Coinbase must face the legal actions brought against it by the country’s Securities and Exchange Commission (SEC). In a court hearing on Wednesday, US District’s Judge Katherine Failla denied the company’s motion to dismiss the SEC’s charges, which claimed the exchange violated federal securities rules.

Court Denies Coinbase Motion

In June 2023, the SEC sued Coinbase for operating in the US as an exchange, broker, and clearing agency without registering with the regulator. The securities watchdog alleged that Coinbase has been engaging in an unregistered securities offering since 2019 through its staking-as-a-service program, which allows customers to earn profits on their crypto holdings.

The SEC said that through the offering of these services, the exchange provided a “marketplace that brings together the orders for securities of multiple buyers and sellers using established”.  In the complaint, the Commission disclosed t...