Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The U.S. court determined that the cryptocurrency exchange Coinbase is not permitted to act as a broker through its non-custodial Coinbase Wallet. The decision has been regarded by the crypto community as a significant precedent for providers of DeFi solutions.
The U.S. District Court for the Southern District of New York approved Coinbase’s request to dismiss the Securities and Exchange Commission’s (SEC) allegations concerning Coinbase Wallet.
In her ruling, Judge Katherine Failla stated that the cryptocurrency exchange cannot be classified as a broker due to its self-custody wallet application. This is because the app is non-custodial, allowing users complete control over their assets.
Related Posts
The SEC maintained other allegations against Coinbase. The judge rejected the exchange’s motion to dismiss the case and ruled that the SEC could demonstrate that Coinbase functioned as a broker and clearing agency in accordance with federal securities laws and participated in the unregistered offer and sale of securities. The court instructed the parties to present evidence of guilt or innocence by April 19, 2024.
Although the court’s ruling cannot be viewed as a triumph for Coinbase, the crypto community has labeled it a significant victory for providers of non-custodial crypto wallets and similar Web3 applications. This ruling establishes a precedent that DeFi developers may reference in the future when confronted with analogous claims from regulators. It also restricts the SEC’s ability to charge DeFi solution providers with unregistered brokerage activities.
In June 2023, the SEC initiated legal action against Coinbase, alleging that the cryptocurrency exchange breached federal laws by designating 12 tokens as securities.
Сообщение SEC Vs. Coinbase Case Sets Precedent for DeFi Solution Providers появились сначала на CoinsPaid Media.
