Coinbase Chief Legal Officer Paul Grewal said the exchange had anticipated that the Court would allow the US Securities and Exchange Commission (SEC) case against it to proceed.
Grewal made the statement in a March 27 post on social media platform X after Judge Katherine Polk Failla ruled that the Commission had sufficiently pleaded its case against the largest US-based crypto trading platform.
Following the news, Coinbase shares dropped by more than 3% to $260, according to Yahoo Finance data.
According to the March 27 court order, the Judge found that Coinbase operated as an exchange, a broker, and a clearing agency under federal securities laws. Additionally, the Judge ruled that Coinbase offered and sold unregistered securities through its staking program.
However, the Judge dismissed the SECs claim that Coinbase acted as an unregistered broker via its wallet application.
In response, Grewal said:
The Court decided that our SEC case will move forward on most of the claims, but dismissed the claims against Coinbase Wallet. We were prepared for this, and we look forward to uncovering more about the SECs internal views and discussions on crypto regulation.
The SEC sued Coinbase last year, alleging that the firm violated federal securities law by facilitating trading of at least 13 crypto securities tokens.
Notably, Coinbase and the SEC have an extensive history of legal battles, with the exchange recently filing legal actions against the financial regulators refusal to establish rules demonstrating its authority over the emerging industry.
Meanwhile, several crypto stakeholders have dismissed the significance of the new ruling in favor of the SEC, with one community member describing it as a nothingburger.
Fox Business journalist Eleanor Terret said:
The bar was always low for the SEC to get its way here. Would have been very surprising if Failla hadnt found at least one plausible argument in the handful they are alleging against Coinbase. Now Coinbase will have a chance to prove its case in court like Ripple.
The post Coinbase shares dip as court sides with SEC in ongoing legal battle appeared first on CryptoSlate.
Read more: https://cryptoslate.com/coinbase-shares-dip-as-court-sides-with-sec-in-ongoing-legal-battle/
Text source: CryptoSlate
Join BINANCE!
The world's largest crypto exchange
Welcome at World Crypto Global. This portal is packed with useful content and resources to built out your own crypto skills. WCG is a site member of ITeGAMAX's online services.
The information provided by World Crypto Global on this Site is for general informational purposes only. All information on this Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on this Site.
UNDER NO CIRCUMSTANCE SHALL WE HAVE ANY LIABILITY TO YOU FOR ANY LOSS OR DAMAGE OF ANY KIND INCURRED AS A RESULT OF THE USE OF THE SITE OR RELIANCE ON ANY INFORMATION PROVIDED ON THE SITE. YOUR USE OF THE SITE AND YOUR RELIANCE ON ANY INFORMATION ON THE SITE IS SOLELY AT YOUR OWN RISK.
Use of this site is subject to our Terms and Conditions, Disclaimer, and Privacy Policy.
WE AND OUR PARTNERS USE COOKIES ON THIS SITE TO IMPROVE OUR SERVICE, PERFORM ANALYTICS, PERSONALIZE ADVERTISING, MEASURE ADVERTISING PERFORMANCE, AND REMEMBER WEBSITE PREFERENCES.
By using this website, you automatically accept that we use cookies.
To learn more about use of cookies see our Privacy Policy. Learn More.
