Summary
TLDR: Judge Failla partially ruled in favor of the SEC in their case against Coinbase, finding that the staking program offered by Coinbase constituted as an unregistered security. However, she did not agree with the SEC’s claim that Coinbase operated as an unregistered broker through its wallet offering. The legal battle between the two will continue, with both parties having until April 19 to submit a case management plan to the court.
Key Points
1. Coinbase received a partial win and a partial loss in a judgment from Judge Katherine Polk Failla in the SEC’s case against the crypto exchange on Wednesday.
2. The SEC’s legal fight with Coinbase began last June, alleging that Coinbase operated as an unregistered exchange, broker, and clearing agency. The SEC targeted both its staking-as-a-service program and wallet offering.
3. Judge Failla largely denied Coinbase’s motion for a summary judgment, finding that the SEC sufficiently pleaded that Coinbase operated as an exchange, clearing house, and broker under the law, as well as engaged in the sale and offering of unregistered securities through its staking program.