US Securities Commission’s dismissal of Coinbase lawsuit shows vulnerable signs
The tech industries must observe the legal risks of user representations
Early this year, when the U.S. Securities and Exchange Commission (SEC) dismissed the landmark lawsuit against Coinbase that sought to regulate the company as a stock exchange, it was heralded as the end of an overly aggressive crypto-enforcement agenda.
However, the federal regulator’s holdover investigation into the accuracy of Coinbase’s ‘verified user’ numbers shows that tech companies, including those in the fintech and crypto sectors, remain vulnerable to fraud claims, even under the current administration.
Therefore, tech companies should heed the warning signs for potential regulatory scrutiny and commercial disputes concerning representations about their users.