People who use Coinbase want to sue the company for over 79 crypto tokens that are available on the platform. They could also be called securities, which means that the sales could be illegal under the law, so that would make them illegal.
It was filed last week by Christopher Underwood, Louis Oberlander, and Henry Rodriguez with the district court in New York’s southern district. They say that everyone who has bought any of these things should be reimbursed for their losses up to $5 million together.
It’s very long, but it also includes Polkadot (DOT), Dogecoin (DOGE), Chainlink (LINK), Solana (SOL), and more.
Securities or Not Securities
The plaintiffs say that Coinbase should have been registered with the Securities and Exchange Commission (SEC) as a national securities exchange, but they don’t know why. However, this may require the same regulatory and reporting rules that are used for inventory exchanges.
In addition, the SEC has been slow to act on regulating and categorizing crypto assets, and the US government is still a long way from putting together any kind of regulatory framework.
The suit talked about SEC chair Gary Gensler and his most recent comments on Coinbase’s registration status, which the suit talked about.
It was recently revealed that Coinbase has not been registered with the SEC, even though they have “dozens of tokens that may be securities.”
It’s very unlikely that the case will go to trial or even get more than this first filing. Previous fights with this subject have been little or nothing. Read also; What is an NFTs and Why You Should Care
Last year, it was said that five proposed class actions against crypto companies had been voluntarily dropped in a federal court in New York City.
Coinbase Continues Listing
Coinbase still lists a lot of tokens, which is very different from how it used to be a few years ago when only a few could be traded.
One of the most recent tokens to be added to the list is the new ApeCoin for BAYC NFT collectors who want to buy them. Coinbase added APE to the “experimental asset label,” which is a special category for low-liquidity assets that the company says to be careful about. Read more;
Following the March 17 airdrop, the token saw a lot of movement. It also caused the price of Ethereum to go up because people wanted to get their money.