Paul Grewal, Coinbase's Chief Legal Officer, acknowledged that the company had expected the Court to allow the US Securities and Exchange Commission (SEC) case against them to move forward. He shared this information on March 27 through a post on the social media platform X following Judge Katherine Polk Failla's ruling that the SEC had presented a sufficient case against the prominent US-based crypto exchange.

In reaction to this development, Coinbase's shares saw a decline of over 3%, falling to $260, according to data from Yahoo Finance. Despite this setback, Coinbase remains resilient and prepared for the legal proceedings that lie ahead.

The recent court ruling highlighted Coinbase's role as an exchange, broker, and clearing agency under federal securities laws. Additionally, the Judge concluded that Coinbase had distributed unregistered securities through its staking program. However, the claim that Coinbase operated as an unregistered broker through its wallet application was dismissed.

In response to these outcomes, Grewal stated that while the SEC case would proceed on most claims, the claims against Coinbase Wallet had been dismissed. He expressed readiness to delve deeper into the SEC's perspectives on crypto regulations through the upcoming legal process.

It is worth noting that Coinbase had been sued by the SEC last year for allegedly violating federal securities laws by enabling the trading of 13 crypto securities tokens. Despite the legal challenges, Coinbase has been actively contesting the SEC's reluctance to establish clear regulatory frameworks for the crypto sector.

While the ruling favored the SEC, some within the crypto community have downplayed its significance, with one member referring to it as a "nothingburger." Journalist Eleanor Terret echoed this sentiment, highlighting that the SEC's assertions against Coinbase were expected, and now Coinbase will have the opportunity to present its case in court, similar to the ongoing situation with Ripple.