Coinbase vs SEC Face-off: Will The Coinbase Lawsuit be Dismissed?

Jan 19, 2024

Coinbase appealing against SEC

The SEC’s war on crypto platforms and service providers continues. However, Coinbase is fighting back this time by filing a motion to drop the case and challenge the SEC’s ruling over the crypto market.

The Coinbase lawsuit has been one of the hottest topics of 2023, as the SEC sued the largest crypto exchange platform for selling unregistered securities and offering staking programs of unregulated contracts.

Will the New York court overrule the SEC’s accusations? How will the Coinbase and SEC battle end?

What Happened?

Coinbase is appealing at the New York court to drop the SEC’s case against it.

In June 2023, the SEC accused Coinbase of trading unregistered securities on its platform and named 13 tokens, including Solana, Cardano, Polygon, Sandbox, and others. 

The claim is that these digital assets are deemed nationally tradable securities and should have been registered with the US regulatory authority. 

The SEC indicates that Coinbase is not registered as a broker or a national security contract trader, making these offerings illegal in the eyes of the SEC.

In its defense, Coinbase argues that they were never required to be registered as brokers when the company made its public offering back in 2021.

This is not the first jab from the SEC against cryptocurrencies, as Binance faced a similar case in 2023, right after the Coinbase lawsuit, which was concluded by Binance paying $2.7 billion in settlements. 

What is Unregistered Securities?

The SEC defines tradable contracts or securities as assets associated with registered entities or businesses in the US. Therefore, it perceives the tokens Coinbase lists in its platform as national securities.

However, since Coinbase performs as a crypto business and is not registered as a national security broker, the SEC puts these tokens under the unregistered securities meaning.

Similarly, the SEC call on Coinbase staking campaigns states that these programs involve assets issued by networks backed by registered organizations, making them legally binding investment contracts.

The crypto platform issued an 18-page-long statement indicating that its staking programs are not conventional investment contracts that must be registered. 

Staking, as Coinbase says, involves locking up assets to contribute to the overall network development, which is different from money investment, which disqualifies it from registration at the SEC.

Why is it Important?

The Coinbase news is significant because it involves one of the largest and most influential crypto exchanges in the world. Therefore, the outcomes of this ruling are more likely to shape the future of cryptocurrencies, especially with the news beating around spot Bitcoin ETF trading.

According to a US attorney, dismissal cases are very rare, especially when they involve the SEC and crypto assets. However, the hopes are in the judge’s history with similar lawsuits, who previously dropped a case against Uniswap, who was accused of offering scam tokens.

This case is part of a series of crackdowns by the SEC on crypto assets and exchanges after the infamous FTX case. Gary Gensler, the chairman of the US regulatory body, has been on a consistent call to regulate cryptocurrencies and require exchanges to register as brokers.

However, crypto communities largely oppose this step because it contradicts the fundamentals of decentralized economies and transactions.

Coinbase’s international influence made the whole world wait for this trial, and we can only wait for the outcomes of this hearing, which is more likely going to change the fate of cryptocurrencies forever.

Subscribe Our Newsletter

One of America's Youngest Billionaires Details His Big Financial Mistake
One of America’s Youngest Billionaires Details His Biggest Financial Mistake

Sam Bankman-Fried may have made his wealth by starting crypto exchange FTX, but he is still learning about some elements of the industry. Indeed, according to Yahoo Finance, the 29-year-old billionaire's worst financial blunder was waiting too long to enter the crypto craze.

Banks and Finance
European Stock Markets Suffer Valentine's Day Slump Amid Russia-Ukraine Conflict
European Stock Markets Suffer Valentine’s Day Slump Amid Russia-Ukraine Conflict

The FTSE 100, which has strong exposure to energy and commodities sectors, sank 1.7% in London, while the CAC dropped 2.8% in Paris and the DAX declined 2.1% in Frankfurt.

Stocks
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Tamta

Crypto Token Supply From A to Z
We all agree that cryptocurrency investment is an attractive method to generate profits in the long run. But with so many options, which crypto assets should you choose?

discover
Understanding Indexed Universal Life Insurance

Tamta

Understanding Indexed Universal Life Insurance (IUL)

Life is full of uncertainties, and while it's uncomfortable to contemplate our mortality, it's essential to prepare for the future to protect our loved ones. In today's fast-paced world, forward-thinking and financial planning is crucial in ensuring the well-being of those we care about most.

Investing
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison

    Constantine

    Top Solana Meme Coins in 2025: Best Presales and Where to Buy

    Solana Meme Coins 2025

    Alexander

    How Renewable Energy Stocks Can Supercharge Your Portfolio

    How Renewable Energy Stocks Supercharge Your Portfolio

    SEC Crypto Regulations: What Financial Advisors Need to Know

    SEC Crypto Regulations: Insights for Financial Advisors

    Hazem

    The Cup and Handle Pattern – How Trade Using This Bullish Indicator?

    Cup and Handle Pattern – How to Predict Price Breakouts?
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.