Summary
SEC and Coinbase both scored partial wins in a court ruling. SEC’s lawsuit against Coinbase was not dismissed, but the exchange won on claims about its wallet service. The court found that Coinbase’s staking program violates securities laws. Both sides are preparing for an expected trial. Coinbase remains confident in their legal arguments. SEC emphasizes that economic realities determine if an offering is a security.
Key Points
1. The Securities and Exchange Commission and Coinbase had partial wins in a court ruling, with the SEC sufficiently pleading that Coinbase operates as a clearing agency, broker, and exchange under federal laws.
2. The court found that Coinbase’s staking program engages in the unregistered offer and sale of securities, and the SEC has sufficiently pleaded control person liability for CGI under the Exchange Act.
3. Coinbase won in its motion regarding its wallet service, with the court granting claims that the SEC’s argument of Coinbase acting as an unregistered broker in offering its wallet service was insufficiently supported by factual allegations.