Coinbase Lawsuit Ruling
A recent ruling by a New Jersey court judge deemed a lawsuit against Coinbase acceptable, allowing shareholders to sue the crypto exchange for its misleading stance on SEC regulations. The lawsuit, led by Swedish pension fund Sjunde AP-Fonden, accused Coinbase and its executives of failing to disclose the likelihood of an SEC enforcement action. Judge Martinotti also allowed shareholders to assess the firm’s risk disclosures in the event of a bankruptcy filing.
Legal Challenges for Coinbase
Martinotti’s disapproval of Coinbase’s motion to dismiss signals ongoing legal troubles for the firm, particularly in its battle with the SEC. While there have been setbacks, such as a federal judge rejecting Coinbase’s appeal in a previous SEC lawsuit, there have also been victories. Judge Katherine Polk Failla ordered the SEC to provide crucial information for Coinbase’s defense, and a court dismissed the claim that Coinbase Wallet was an unregistered broker-dealer.
Coinbase’s Political Activities
Amidst its legal battles, Coinbase has been actively involved in lobbying efforts during the U.S. election cycle. The company has made direct donations to super PACs like Fairshake and organized crypto fundraisers for political candidates. Coinbase’s CLO, Paul Grewal, expressed confidence in a pro-crypto Congress regardless of the election outcome, highlighting the company’s engagement in shaping regulatory policies.
