Coinbase Beats Lawsuit Over Unregistered Securities Sales

Coinbase, the largest U.S. cryptocurrency exchange, has won a major victory in court after a judge dismissed much of a customer lawsuit over unregistered securities sales.

The lawsuit claimed that Coinbase sold dozens of tokens, including XRP and dogecoin, without registering as an exchange or broker-dealer.

U.S. District Judge Paul Engelmayer in Manhattan ruled that the majority of trading volume on the platform was not subject to securities laws because it did not involve a transfer of ownership of the tokens.

However, the judge allowed customers to pursue claims related to 'inventory' transactions, which accounted for just 0.03% of trading volume and totaled at least $178 million in sales.