Coinbase Gets Federal Ruling on Statutory Seller Status

Coinbase Global Inc.'s status as a 'statutory seller' of securities has been clarified by a federal court in New York. In a ruling, Judge Paul A. Engelmayer stated that Coinbase is considered a statutory seller only when it fills customers' token orders from its own inventory.

The ruling comes after a lawsuit accused the company of selling unregistered securities. The court determined that matched transactions represent more than 99% of the trading volume at issue in the lawsuit, and therefore, the majority of the claims will be dismissed.

However, Engelmayer allowed securities law claims over Coinbase's inventory sales to proceed. This decision may have implications for the company's business practices and its compliance with securities regulations.