Coinbase SEC Lawsuit Isn’t Over Yet, But The Exchange Remains Optimistic

Key Points:

• Coinbase SEC lawsuit is still ongoing while the exchange remains confident, citing recent court developments.
• The company emphasized political contributions to Fairshake PAC and its impact on pro-crypto candidates in state elections.
• Financially, Coinbase reports strong Q1 results with $1.18 billion profit and tripled transaction revenue.

According to Bloomberg, Coinbase Global tackled its ongoing legal tussles with the US Securities and Exchange Commission (SEC) while revealing better-than-expected results for the first quarter.

Coinbase SEC Lawsuit Is Confident About Its Position By The Exchange

In their shareholder letter, the largest US crypto exchange referenced a recent Manhattan federal court decision dismissing the SEC‘s claim regarding its Wallet offering as an unregistered broker. However, the court declined to fully dismiss the Coinbase SEC lawsuit, alleging Coinbase’s sale of unregistered securities and unauthorized operation as an exchange, broker, and clearing agency.

Emphasizing the pursuit of clarity amid legal complexities, the company expressed confidence in its legal position and readiness for an exhaustive discovery phase ahead.

Beyond legal matters, Coinbase highlighted its political engagement, disclosing contributions to Fairshake PAC, a significant US super PAC supporting pro-crypto candidates across party lines. The impact of crypto advocacy was underscored, noting its influence in key state primary elections, such as California, Texas, and Alabama.

Additionally, crypto lobbying was credited with influencing outcomes in high-profile political contests, including the defeat of Democratic Representative Katie Porter, known for her critical stance on the digital asset industry, in a Senate primary.

Coinbase Reports Stellar First Quarter Results

In a separate development, John Deaton, a crypto lawyer campaigning for a Senate seat, filed an amicus brief in the Coinbase SEC lawsuit to support the exchange, representing the interests of 4,701 Coinbase customers pro bono.

Financially, Coinbase reported robust performance, with a net income of $1.18 billion, or $4.40 per share, compared to a loss of $78.9 million a year earlier. Notably, this quarter’s profit includes a $650 million mark-to-market gain on crypto assets held for investment. Consumer transaction revenue surged over 100% year-over-year to $935 million, contributing to total transaction revenue nearly tripling to $1.08 billion.