On Wednesday, the Securities and Exchange Commission achieved a significant victory in its legal battle against Coinbase after a judge ruled that the SEC's allegation, accusing the cryptocurrency exchange of conducting unregistered sales of securities, could proceed to trial and be heard by a jury.
In June, the regulator initially filed a lawsuit against Coinbase, asserting that the company was operating as an unregistered broker and exchange. The agency sought a permanent injunction to prevent the company from continuing these activities.
The judge previously agreed to dismiss the claim by SEC that Coinbase acted as an unregistered broker when it made its Wallet app available.
This development arrives amidst Coinbase's increasing involvement in Wall Street's embrace of cryptocurrency. Notably, in January, the SEC greenlit a series of U.S. spot bitcoin exchange-traded funds (ETFs). Several of these ETFs have forged partnerships with Coinbase.
