US SEC scores partial win against Coinbase, What’s next?
In a big blow to the US’s biggest crypto exchange, a judge has allowed the Securities and Exchange Commission (SEC) to proceed with its lawsuit against Coinbase, Inc. The SEC alleges that the exchange intermediated transactions in crypto-asset securities on its trading platform and related services violate federal securities laws.
Coinbase gets a partial win
As we look into court filings, the judge’s decision permits most of the SEC’s lawsuit to move forward. However. it also dismisses one claim made by the agency against Coinbase. The judge dismissed the commission’s claim that Coinbase acted as an unregistered broker via its wallet application. This can be seen as a major relief for the exchange.
This ruling can be seen as a partial win for Coinbase. The crucial judgment shows the court’s acknowledgment of the SEC’s allegations but it also recognizes certain arguments presented by the exchange.
It is important to note that the case against the US’s biggest crypto exchange is a major hike in the SEC’s efforts. The commission aims to enforce the securities law within the crypto industry.
The commission in the lawsuit had asserted that Coinbase operated illegally as a national securities exchange, and broker without registering. However, the agency alleges that the exchange facilitated the trading of at least 13 crypto tokens that should have been registered as securities.
On the other hand, the exchange argues that crypto assets do not meet the definition of securities given by the securities law. Those tokens do not have nature like traditional securities. It argues that the returns from those tokens do not solely depend on the efforts of others. It is a key criterion for checking whether an investment constitutes a security.
What’s happening in the market?
This comes at a crucial time when there is ongoing debate around the regulatory status of cryptos. This is also the time when the digital assets market is hitting back to back rallies.
Bitcoin dealing with the high selling pressure, dropped below the $70,000 price level. BTC price jumped above the $71,000 level but started to decline as the Coinbase news broke out.
The world’s biggest digital asset’s price is up by 71% in the last 60 days. Bitcoin is trading at an average trading price of $69,743, at the press time. Its 24 hour trading volume is down by 9% to stand at $38 billion. It is holding a market cap of $1.3 trillion.
