SEC Suit Against Coinbase Can Go Forward, Judge Rules (4)

The US Securities and Exchange Commission can proceed with its lawsuit against Coinbase Inc., the biggest US cryptocurrency-trading platform, claiming the company failed to register as a securities business, a federal judge in New York ruled.

The SEC adequately alleged that Coinbase engages in the “unregistered sale and offer of securities” and illegally operates as an exchange, a broker and a clearing agency under federal securities laws, US District Judge Katherine Polk Failla said in her opinion Wednesday.

The decision is a blow to Coinbase and other cryptocurrency players who have argued the SEC has no power to regulate ...