On Wednesday, a US district judge gave a judgment that the Security and Exchange Commission (SEC) can continue with its legal battle against Coinbase.
Judge Katherine Failla denied Coinbase’s move to dismiss the case, contending that the SEC has given adequate proof that the exchange might be abusing Security laws with its trading and staking products. This will offer the SEC the chance to demonstrate its case.
While the judge’s decision clearly conflicts with Coinbase at this stage, the exchange has asserted that it had expected the ruling. Coinbase will challenge the lawsuit, with chief legal officer Paul Grewal expressing confidence in the organization’s legal argument.
In the meantime, the crypto space has united behind Coinbase, with Edward Snowden driving the voices for a Coinbase triumph at the end. As a matter of fact, Snowden noted that the court’s choice to propel the SEC’s case “does not bother” him.
Instead, he expects a comparative result as that which worked out between the SEC and Grayscale last year.
Recall that in August 2023, a U.S. court ruled against the SEC, preparing the way for the regulator to endorse spot Bitcoin ETFs at the beginning of this year.
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According to Snowden, on the chance that the SEC keeps on acting in “bad faith,” it will ultimately lose so hard in court that it will never again get the opportunity to seek authorization against crypto-related entities. Meanwhile, the SEC at present likewise has legal cases against Binance and Kraken.
This doesn't bother me. If the SEC keeps acting in bad faith like this, they're going to lose so hard in court that they'll never be able to do this to anyone ever again. Remember when the SEC got spanked so badly that Gensler had to approve BTC ETFs with tears in his eyes? yeah https://t.co/XWOwmoaICN
— Edward Snowden (@Snowden) March 27, 2024
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Wallet Front Victory For Coinbase
While some of the SEC’s claims against Coinbase will continue, the exchange scored a triumph on one front. The SEC had accused Coinbase of serving as an unregistered merchant by enabling customers to get to its Coinbase Wallet application.
In the court ruling, Judge Failla excused the SEC’s case, denying any opportunity for the SEC to bring a case against Coinbase for offering that choice to its users. In the meantime, the two players have until April 19 to give a “proposed case management plan,” which will permit the case to push ahead.