In recent news, Coinbase won in its fight against the SEC. A win for the crypto industry but the war isn’t over.

Coinbase, one of the leading cryptocurrency exchanges, has achieved a significant victory in its legal battle with the United States SEC. The U.S. Court of Appeals for the Second Circuit ruled in favor of Coinbase, affirming that the secondary sales of cryptocurrencies on its platform do not violate the Securities Exchange Act, hence, allowing Coinbase to conduct this activity on its platform without violating any regulations

This ruling impacts a nationwide group of individuals who engaged in token trading on Coinbase between Oct. 8, 2019, and March 11, 2022. The legal battle revolved around whether the cryptocurrencies traded on Coinbase met the criteria to be classified as securities.

The SEC argued that Coinbase's actions constituted the offering and sales of unregistered securities. Additionally, they accused Coinbase of violating multiple provisions of securities laws.

In contrast, Coinbase argued that secondary sales of crypto-assets did not meet the criteria for securities transactions, challenging the applicability of securities regulations.

The court's ruling was largely dependent on how Coinbase's user agreements - which changed over time - were interpreted. It was stressed that the relevant version of the user agreement should be clear because any differences would prevent a conclusion. The plaintiffs perceived the verdict as a step forward in holding crypto platforms responsible under securities regulations. Coinbase, on the other hand, claims the ruling supports its stance that secondary cryptocurrency sales aren't equivalent to securities transactions. Moreover, Coinbase emphasized the importance of regulatory clarity to promote innovation within the industry. The ruling from the Court of Appeals carries significant implications for the regulation of cryptocurrencies and digital assets.

You could say this is a win, not just for Coinbase, but for the entire crypto industry. The battle might have been won, but the war sure isn’t over.