US Judge Declares SEC Lacks Legal Ground to Sue Coinbase
Coinbase is one of the major cryptocurrency exchanges that are facing regulatory scrutiny from the SEC. However, the presiding Judge over the case named Katherine Polk Failla has recently issued remarks in favor of the defendants.
SEC has maintained in the case that the lending program of Coinbase includes unregistered security offerings. At the same time, the regulatory agency has maintained that Coinbase has refrained from offering clarity to the investors regarding risks and regulatory status of its trade offerings.
Meanwhile, Coinbase has aggressively defended its position maintaining that SEC has refrained from offering regulatory clarity for the crypto sector. The case is under procession at the New York Southern District Court under the supervision of Judge Failla.
She issued some remarks concerning the case that reflect a positive stance for Coinbase. She talked about the approved IPO event conducted by Coinbase in her commentary talking about the legal pretext of her opinion.
Judge Failla pointed out that Coinbase was able to host an IPO event successfully in April. She maintained that Coinbase was liable to assume that its lending program was legal on account of S-1 form approval.
She also maintained that SEC approved the S-1 form submitted by Coinbase when it was going public. The Judge pointed out that the legal implications of the form in question allowed Coinbase to register its security offerings with SEC.
She claimed that while she has mentioned the S-1 form on various occasions in the Coinbase case, she deems it to have central importance in this matter. These remarks have sparked some positive development for Coinbase in the matter. There is an increasing probability that the SEC is unable to carry the lawsuit forward.
On the other hand, Coinbase shares experienced a massive boost in the marketplace on account of its nomination in the surveillance sheet agreement in BlackRock’s ETF filing.
Coinbase Suspends Staking Services in Four States
Coinbase recently suspended staking services in four US States. The firm has maintained that it took action keeping in view pushback from the local regulators in the region.
The consumers of Coinbase hailing from California, South Carolina, New Jersey, and Wisconsin were affected by the staking suspension. It is important to note that regulators from 10 states took their cue from the SEC lawsuit against Coinbase in July.
Regulators have objected that the staking services offered by Coinbase can be classified as unregistered securities. The decision of Coinbase to halt the staking services in various American jurisdictions indicates the antagonism in America surrounding the crypto sector. Another major cryptocurrency exchange named Kraken paid $30 million in settlement to SEC in the matter of offering unregistered securities as staking offerings.
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