The SEC sues Coinbase for acting as an unregistered broker, national securities exchange and clearing agency in connection with its cryptocurrency exchange, Coinbase Prime and Coinbase Wallet. Further, the SEC alleges Coinbase offered and sold unregistered securities in connection with its staking program. To date, the court has found that the SEC sufficiently pled that Coinbase operates as a securities exchange, and that Coinbase offered and sold unregistered securities in connection with its staking program. However, the court granted Coinbase’s motion to dismiss the SEC’s claim that Coinbase was acting as a broker with respect to the Coinbase Wallet.
This case, along with similar cases brought against Binance and Kraken, will bring clarity to whether tokens traded on the secondary market are securities.
1:23-cv-04738
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