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SEC Permitted to Sue Coinbase for Offering Unregistered Securities. U.S. District Judge Katherine Polk Failla has ruled that the Securities and Exchange Commission's (SEC) lawsuit against Coinbase can proceed, The Verge reports. "The SEC has sufficiently pleaded that Coinbase operates as an exchange, as a broker, and as a clearing agency under the federal securities laws and, through its Staking Program, engages in the unregistered offer and sale of securities.” The judge rejected arguments that existing laws are inadequate when it comes to crypto. "The ‘crypto’ nomenclature may be of recent vintage, but the challenged transactions fall comfortably within the framework that courts have used to identify securities for nearly eighty years.", U.S. District Judge Katherine Polk Failla, via ruling. Coinbase chief legal officer Paul Grewal took to X to respond to the ruling. "Early motions like ours against a government agency are almost always denied." "But clarity is the ultimate goal and today’s decision continues us on that path." "Looking ahead, we remain confident in our legal arguments, we look forward to proving we’re right, we are eager for the opportunity to take discovery from the SEC for the first time, and we appreciate the Court’s continued consideration of our case.", Paul Grewal, Coinbase chief legal officer, via X. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT