Significant court decision: How the US Court decided the issue of token trading on Coinbase
Date: 2024-04-09 Author: Oliver Abernathy Categories: IN WORLD
In a legal battle that dragged on for several years, the US Court of Appeals for the Second Circuit ruled that token trading on the Coinbase platform did not violate securities laws.
The dispute concerned the legality of secondary sales of cryptocurrencies on Coinbase between October 8, 2019 and March 11, 2022, and the court assessed whether these tokens met the criteria of securities.
The court's decision
The court found that the application of securities laws to Coinbase's operations was inappropriate, and some of the lower court's decisions were overturned. However, some of the decisions were upheld.
The court's ruling focused on the interpretation of Coinbase's user agreements, noting their variability over time, making legal analysis difficult and making legal issues difficult to resolve.
Prospects and reaction to the decision
The plaintiffs see the decision as an important step in holding crypto platforms accountable, while Coinbase sees it as a vindication of its position that secondary sales of cryptocurrencies are not securities transactions.
For the cryptocurrency and digital asset industry, the court's decision could have a significant impact, highlighting the need for legal clarity to spur innovation and regulation in the field.
