Coinbase’s motion to drop the SEC’s case against the exchange was denied in court, allowing the regulator to proceed with its lawsuit.
A United States court has denied Coinbase’s motion to dismiss the United States Securities and Exchange Commission’s (SEC) case against the exchange.
The decision, made by U.S. District Judge Katherine Failla, allows the SEC to pursue its lawsuit against Coinbase, which alleges that the exchange operates as an unregistered exchange, broker, and clearing agency, according to March 27 court documents, that state:
The SEC sued Coinbase in June 2023 alleging that the crypto exchange violated federal securities laws by listing 13 tokens it alleged were securities. The firm was seeking an order to drop the case, questioning the SEC’s authority over crypto exchanges.