📺 Stream EntrepreneurTV for Free 📺

SEC wins major victory in Coinbase legal battle U.S. Securities and Exchange Commission (SEC) has won an early victory in the legal saga involving Coinbase. U.S. District Judge Katherine Polk Failla wrote that “the Court finds the SEC...

By Brian-Damien Morgan

entrepreneur daily

This story originally appeared on Due

U.S. Securities and Exchange Commission (SEC) has won an early victory in the legal saga involving Coinbase.

U.S. District Judge Katherine Polk Failla wrote that “the Court finds the SEC has sufficiently pleaded that Coinbase operates as an exchange, as a broker, and as a clearing agency under the federal securities laws, and, through its Staking Program, engages in the unregistered offer and sale of securities.”

Coinbase going to court

The decision by Judge Polk Falla means that the case will now go to trial, which Coinbase would have hoped to avoid.

Coinbase’s Chief Legal Officer Paul Grewal would take to social media to post a number of responses to the court ruling:

Today, the Court decided that our SEC case will move forward on most of the claims, but dismissed the claims against Coinbase Wallet. We were prepared for this, and we look forward to uncovering more about the SEC’s internal views and discussions on crypto regulation. 1/6

— paulgrewal.eth (@iampaulgrewal) March 27, 2024

“While we continue this process and any necessary appeals, we encourage Congress to build on the momentum we saw last year to advance comprehensive digital assets legislation in the US. This is critical if we want innovation to remain in the US,” Grewal would say.

Coinbase is just one cryptocurrency exchange under the SEC microscope. Binance has also faced scrutiny and been embroiled in legal battles about the legitimacy of the crypto company’s origins and trading practices.

Grewal concluded his social media post by saying, “We (Coinbase) remain confident in our legal arguments, we look forward to proving we’re right, we are eager for the opportunity to take discovery from the SEC for the first time, and we appreciate the Court’s continued consideration of our case.”

As cryptocurrency markets have gathered strength, the SEC has been keen to regulate emerging markets and ensure that a set definition is applied to how they trade in digital currency.

SEC Chairman Gary Gensler has been vocal about his and the regulator’s stance on cryptocurrency operators, speaking recently at Columbia Law School saying, “There are participants in crypto securities markets that seek to avoid these (SEC) registration requirements. No registration means no mandatory disclosure. Many would agree that the crypto markets could use a little disinfectant.”

The post SEC wins major victory in Coinbase legal battle appeared first on Due.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

These Coworkers-Turned-Friends Started a Side Hustle on Amazon — Now It's a 'Full Hustle' Earning Over $20 Million a Year: 'Jump in With Both Feet'

Achal Patel and Russell Gong met at a large consulting firm and "bonded over a shared vision to create a mission-led company."

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Side Hustle

How to Turn Your Hobby Into a Successful Business

A hobby, interest or charity project can turn into a money-making business if you know the right steps to take.

Business News

These Are the 10 Most Profitable Cities for Airbnb Hosts, According to a New Report

Here's where Airbnb property owners and hosts are making the most money.

Starting a Business

This Couple Turned Their Startup Into a $150 Million Food Delivery Company. Here's What They Did Early On to Make It Happen.

Selling only online to your customers has many perks. But the founders of Little Spoon want you to know four things if you want to see accelerated growth.

Branding

All Startups Need a Well-Defined Brand Positioning Statement. Here's a 3-Step Framework to Help You Craft One.

Startup founders often lack time but they should invest resources in identifying a winning brand position that will then drive all their strategic decisions.