In a remarkable turn of events, the HTX exchange (formerly Huobi) has achieved a significant milestone by temporarily surpassing the renowned Coinbase in daily spot trading volumes. This historic moment, shared by Justin Sun, the influential figure behind the TRON blockchain and an investor in HTX, has sent shockwaves through the crypto community.

According to the data, on May 27, HTX recorded a staggering $1.81 billion in spot trading volume, outpacing Coinbase's $1.58 billion. This achievement, however, was short-lived, as Coinbase has since regained the top spot, processing a $2.2 billion trading volume in the past 24 hours, making it the third-largest crypto exchange globally, behind Bybit and OKX. HTX, on the other hand, traded around $2.1 billion, placing it just behind Coinbase.

The rise of HTX comes at a critical time for Coinbase, as the exchange faces legal challenges in the United States. The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, accusing the exchange of offering unregistered securities and failing to register as a broker, national securities exchange, or clearing agency.

The legal battle has reached a pivotal juncture, with a U.S. court denying Coinbase's motion to dismiss the SEC's case in March 2024. This ruling has allowed the SEC to continue pursuing its allegations, putting significant pressure on Coinbase. In a strategic move, the exchange has filed a memorandum in support of its interlocutory appeal, seeking to overturn the court's earlier decision and potentially alleviate some of its legal woes.

Adding to Coinbase's troubles, the exchange's customers have filed a lawsuit against two of the company's subsidiaries for repeatedly breaking securities law since the inception of Coinbase.

Against this backdrop, HTX's temporary surpassing of Coinbase in spot trading volumes serves as a testament to the exchange's growing prominence and the potential impact of Coinbase's legal challenges on the broader crypto landscape.

As the industry closely watches the unfolding events, the question remains: will HTX's rise continue, and can it solidify its position as a formidable challenger to the once-dominant Coinbase? The future of the crypto exchange landscape hangs in the balance, with HTX poised to capitalize on Coinbase's legal troubles and cement its place as a leading player in the industry.