Summary
TLDR: A federal judge ruled that the SEC’s arguments against Coinbase in a lawsuit are plausible and allowed the case to proceed. The judge dismissed one claim but upheld others, indicating support for the SEC’s view that many tokenized assets are securities. Coinbase’s Chief Legal Officer was not surprised by the ruling and the case now moves to discovery. The ruling may signal trouble for Coinbase and the broader crypto industry in their battle against federal regulators.
Key Points
1. A federal judge ruled that the SEC’s arguments against Coinbase are largely plausible, allowing the case to proceed and denying Coinbase’s motion to dismiss it entirely.
2. The judge found most of the SEC’s claims against Coinbase fit for trial, supporting the agency’s argument that many tokenized assets constitute securities schemes under the SEC’s purview.
3. The SEC’s case against Coinbase will proceed to discovery, with both parties instructed to submit proposed case management plans by April 19.