Coinbase Wins Big as Judge Rules on Unregistered Securities

A Manhattan federal judge has dealt a significant blow to users of cryptocurrency platform Coinbase, ruling that it cannot be sued for selling unregistered securities in most transactions.

The lawsuit, which has been pending since July 31, 2026, alleged that Coinbase was selling unregistered securities in violation of Section 12(a)(1) of the Securities Act and several state blue sky laws.

The judge's decision is a major win for Coinbase, as it effectively shields the platform from liability for the vast majority of transactions on its platform.