The largest US cryptocurrency exchange, Coinbase, received a positive signal from a federal judge in its legal battle with the Securities and Exchange Commission (SEC) for its Lend program.
The SEC claims that the Lend program includes the offering and sale of securities, i.e. lending contracts, and Coinbase does not register them or seek an exemption. The SEC also alleges that Coinbase misled investors about the program’s risks and regulatory status.
There has been a new development in the lawsuit between Coinbase and the SEC, and New York Southern District Judge Katherine Polk Failla made statements that the SEC would not like.
According to the conference transcript, Judge Failla expressed his skepticism about the SEC’s stance and implied that he sympathized with Coinbase’s argument.
Judge Failla Finds Unreasonable in SEC’s Suing Despite Approval of Coinbase’s IPO
Citing Coinbase’s IPO record, which was approved by the SEC in April, she said it was “not crazy” for Coinbase to think the Lend program was appropriate because “that’s exactly what the SEC allowed them to do when they issued S-1.”
The S-1 is known as an SEC form used by companies seeking to go public to register their securities with the U.S. Securities and Exchange Commission (SEC).
Also, the Judge said that Coinbase and she may be “too much commenting on the release of S-1”, but that “is what she was pointing out”.
*Not investment advice.