SEC Lawsuit Against Coinbase: Judge Rules Partially in Favor of SEC

Judge Failla's Ruling

Judge Katherine Polk Failla has ruled mostly against Coinbase in a lawsuit brought by the Securities and Exchange Commission (SEC). The SEC alleged that Coinbase violated securities laws by operating as an unregistered national securities exchange. Coinbase had requested an appeal to the US Court of Appeals for the Second Circuit, but the SEC argued against it.

Coinbase's Staking Program

The SEC's lawsuit also targeted Coinbase's staking program, in which it pools assets to verify activity on blockchains. The SEC claims that Coinbase failed to comply with the registration and disclosure requirements for securities.