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The SEC can sue Coinbase for offering unregistered securities, judge rules
Coinbase couldn’t get the case dismissed.
Having now carefully considered the parties’ arguments, as well as the many amicus curiae submissions in this case,1 the Court concludes that because the well-pleaded allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part. As explained herein, the “crypto” nomenclature may be of recent vintage, but the challenged transactions fall comfortably within the framework that courts have used to identify securities for nearly eighty years. However, the Court agrees with Defendants that they are entitled to dismissal of the claim that Coinbase acts as an unregistered broker by making its Wallet application available to customers.
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