A Victory For Coinbase in an Ongoing Lawsuit?

The Economic Times

One of the leading crypto exchanges Coinbase has reportedly achieved an important victory in a lawsuit that was ongoing.

With its decision in favor of Coinbase, the United States Court of Appeals for the Second Circuit has confirmed that the secondary sales of cryptocurrencies on its platform do not contravene the Securities Exchange Act.

A large group of people countrywide who traded cryptocurrency on the exchange between October 8, 2019 and March 11, 2022 are impacted by the court ruling. Whether or not the crypto traded on Coinbase met the requirements for securities was at the center from the dispute.

As per the argument of plaintiffs, Coinbase was involving in the sale and offering of securities that were not registered. Coinbase was also accused by them of violating several provisions of securities laws.

On the other hand, Coinbase disputed the necessity of securities laws, arguing that secondary crypto-asset sales did not meet the requirements for securities transactions. Several aspects were examined by court of appeals eventually upholding some of the rulings made by the lower court and overturning others.

Coinbase has also stressed about the importance of regulatory clarity to foster innovation within the crypto industry.

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