A U.S. federal judge has ruled that Coinbase must face allegations from investors that it sold unregistered securities, specifically 79 cryptocurrencies, without proper registration. Judge Paul Engelmayer rejected Coinbase's claim that it did not qualify as a 'statutory seller' under federal law, stating that customers transact solely with Coinbase itself, indicating the exchange acted as a seller. Although a class-action lawsuit was previously dismissed in early 2023, parts were revived by the Circuit Court of Appeals over a year later. Coinbase maintains its position that it does not list, offer, or sell securities on its platform, emphasizing that the recent opinion has narrowed the scope of the case. Additionally, Coinbase is currently involved in a lawsuit with the SEC regarding claims of operating an unregistered securities platform since June 2023.

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