Judge in Coinbase case endorses SEC’s crypto regulation-by-enforcement strategy | Reuters

In a ruling, opens new tab on Tuesday that allows the U.S. Securities and Exchange Commission to proceed with its case against crypto exchange Coinbase, a Manhattan federal judge threw a bucket of ice-cold water on the crypto industry’s criticism of the SEC’s strategy of setting policy through enforcement actions.

U.S. District Judge Katherine Polk Failla of Manhattan held that because at least some crypto trades on the Coinbase platform met the longstanding definition of an investment contract, the SEC can move ahead with claims that Coinbase improperly operated as a securities exchange, broker and clearing agency. She also said the SEC adequately alleged that Coinbase sold unregistered securities through its “staking program,” in which customers received rewards for allowing Coinbase to pool their assets.

Source: Judge in Coinbase case endorses SEC’s crypto regulation-by-enforcement strategy | Reuters