SEC v. Coinbase: Court Partially Grants Coinbase's Motion to Dismiss
On Wednesday (March 27), Judge Katherine Failla partially granted Coinbase's motion to dismiss (BAT). Significantly, the judge did not dismiss charges of operating as an unregistered stock exchange. The ruling created more uncertainty in the cryptocurrency market, and Coinbase and the cryptocurrency market faced another lengthy trial.
As background, the SEC archived charges against Coinbase in June 2023 for allegedly operating as an unregistered exchange, broker, and clearing agency. Coinbase filed a motion to dismiss in August, arguing that the SEC lacks the legal authority to regulate crypto exchanges.
Coinbase Chief Legal Officer Paul Grewal responded to the ruling by urging Congress to address the legislative void plaguing the US digital asset space. The court ruling was also bad news for Ripple and XRP. Legal experts believed that the SEC would resolve the Ripple case if Judge Failla granted Coinbase's MTD.
Coinbase shares ended the week up 3.76% at $265.12. However, Coinbase retreated from a Monday high of $283.48 as investors reacted to the court ruling. BTC spot ETF market inflows and BTC price trends led to gains for the week.
