Coinbase Wins Dismissal of Lawsuit Over Unregistered Securities

Coinbase Inc. won dismissal of a lawsuit by consumers alleging the cryptocurrency exchange facilitated the sale of unregistered securities on its platform.

The proposed class-action suit, filed in federal court in New York in October 2021, seeks damages arising from the sale or soliciting of 79 digital assets that the consumers say amounted to illegal contracts because the platform is not registered with the US Securities and Exchange Commission.

US District Judge Paul A. Engelmayer didn’t make a determination about whether the digital tokens were actually securities, though he said he assumed they were for the purposes of the dismissal ...