2024

Circuit

April

Read

<ul>
 <li>Coinbase wins lawsuit, and secures victory over secondary crypto sales legality.</li>
 <li>The court’s ruling affects users trading tokens from Oct 2019 to Mar 2022.</li>
 <li>The decision emphasizes the significance of regulatory clarity in the crypto industry.</li>
</ul>
<p><a href="https://www.coinbase.com/" target="_blank" rel="noopener noreferrer nofollow">Coinbase</a> secures a significant legal victory as the <a href="https://www.uscourts.gov/about-federal-courts/court-role-and-structure/about-us-courts-appeals" target="_blank" rel="noopener noreferrer nofollow">U.S. Court of Appeals</a> for the Second Circuit rules in its favor, affirming that secondary crypto sales on its platform do not violate securities laws. In other words, the entity affirms that Coinbase’s crypto sales are not securities.</p>
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   <p lang="en" dir="ltr">BIG BREAKING <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"><br><br>COINBASE HAS WON A LAWSUIT CONFIRMING THAT TRADING CRYPTOCURRENCIES ON ITS PLATFORM DOES NOT VIOLATE SECURITIES LAWS. <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f440.png" alt="👀" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f525.png" alt="🔥" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/X8cJrDZ3iY" rel="noopener noreferrer nofollow">pic.twitter.com/X8cJrDZ3iY</a></p>— BITCOINLFG® (@bitcoinlfgo) <a href="https://twitter.com/bitcoinlfgo/status/1776696910071648589?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 6, 2024</a>
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<p>The court’s decision impacts users who traded tokens on Coinbase from Oct 8, 2019, to March 11, 2022, highlighting the ongoing debate on whether cryptocurrencies qualify as securities. Specifically, this is another huge win for the crypto community similar to XRP being confirmed as not a security.</p>
<p>Plaintiffs filed federal and state law claims, alleging Coinbase’s actions constituted unregistered security offerings. However, <a href="https://cryptonewsland.com/coinbase-vs-sec-judge-rejects-most-motions-bitcoin-price-plunges-below-69000/" target="_blank" rel="noopener noreferrer nofollow">Coinbase argued against the applicability of securities laws</a>, leading to a detailed examination by the Court of Appeals.</p>
<p>The court upheld Coinbase’s potential liability under Section 12(a)(1) of the Securities Act while dismissing claims under the Securities Exchange Act due to insufficient evidence. Crucially, the interpretation of Coinbase’s evolving user agreements played a pivotal role, with discrepancies complicating resolution.</p>
<p>Plaintiffs view the ruling as progress in holding crypto platforms accountable under securities laws, advocating for investor protection. Conversely, Coinbase maintains that secondary crypto sales do not constitute securities transactions, stressing the importance of regulatory clarity for industry innovation.</p>
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   <p lang="en" dir="ltr">We appreciate the Second Circuit confirming today what is clear under the federal securities law: there's no private liability for the secondary trading of digital assets on exchanges like Coinbase. Why? Because contracts matter. 1/2</p>— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1776292735063888374?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 5, 2024</a>
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<p>Coinbase’s CLO, <a href="https://cryptonewsland.com/coinbase-clo-paul-grewalexpresses-thoughts-on-sec-vs-coinbase-case/" target="_blank" rel="noopener noreferrer nofollow">Paul Grewal</a>, expressed gratitude for the court’s decision, highlighting the significance of contracts in determining liability under federal securities law.</p>
<p>This ruling carries substantial implications for cryptocurrency regulation, underscoring the ongoing debate over the legal classification of digital assets and the need for regulatory clarity in the evolving crypto landscape.</p>
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<p>The post <a href="https://cryptonewsland.com/coinbase-prevails-in-lawsuit-over-secondary-sales-of-crypto-transactions/" rel="noopener noreferrer nofollow">Coinbase Prevails in Lawsuit Over Secondary Sales of Crypto Transactions</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Coinbase Prevails in Lawsuit Over Secondary Sales of Crypto Transactions

Crypto News Land

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