Judge rules SEC may proceed with lawsuit against Coinbase.

SEC Vs. Coinbase rules the issue.
US District Judge Catherine Failla, however, granted Coinbase's motion on the wallet.

A federal judge has ruled that the US Securities and Exchange Commission (SEC) case against crypto exchange Coinbase can move forward.

U.S. District Judge Catherine Failla ruled on Wednesday, denying Coinbase's motion to dismiss the court order.

The judge rejected Coinbase's motion

The SEC sued Coinbase in June 2023, alleging that the US company operated an unregistered crypto exchange and offered unregistered securities.

Judge Failla upheld the SEC's case, arguing that the regulator sufficiently pleads that Coinbase acts as an exchange, broker and clearing agency under federal securities laws and engages in unregistered offers and sales through its staking program. Guarantees”

The court, however, granted Coinbase's motion to dismiss the SEC's claim against Coinbase Wallet.

“Today, the court decided to move forward with our SEC case on most of the claims, but dismissed the claim against Coinbase Wallet. We are prepared for this, and look forward to learning more about the SEC's internal views and discussions about crypto regulation,” said a Coinbase legal officer. Paul Grewal in his comments Posted By X.

“We appreciate the court's understanding that technological innovations like Coinbase Wallet do not and cannot be subject to US securities laws,” Grewal added.

According to the legal official of the exchange, Coinbase will now prepare to meet the SEC in court. According to court documents, the parties now have until April 19, 2024 to submit a proposed case management plan.

Crypto prices fell slightly following the news. Top altcoins such as Solana, Cardano and Avalanche saw losses of more than 3% each.

Ethereum hovers around $3,500 while Bitcoin creeps below $70,000.