Federal Judge Allows SEC Lawsuit Against Coinbase to Proceed

The decision marks a significant moment in the SEC's campaign to apply securities law to the cryptocurrency industry.

A federal judge ruled that the SEC's lawsuit against Coinbase, alleging unregistered securities sales, can proceed to trial.
Judge Katherine Polk Failla dismissed one claim against Coinbase's wallet service but found most of the SEC's allegations plausible.
The ruling is a significant setback for Coinbase, which argued that the assets it facilitates trading are not securities under the law.
This case marks a high-water mark in the SEC's efforts to apply U.S. securities law to the cryptocurrency industry.
The outcome could have far-reaching implications for the regulation of cryptocurrencies and the operations of crypto exchanges.