Cryptocurrency exchange Coinbase and CEO Brian Armstrong are facing a new class-action lawsuit filed by a group of plaintiffs from California and Florida. The lawsuit alleges that Coinbase’s sales of digital assets have violated state securities laws since its inception. The plaintiffs claim that several tokens sold on Coinbase, such as Solana (SOL), Polygon (MATIC), and others, should be classified as securities.

The lawsuit also mentions that Coinbase has admitted to being a “Securities Broker” in its user agreement, suggesting that the digital asset sales on the platform may qualify as investment contracts or other forms of securities. The plaintiffs are seeking full rescission of these sales, statutory damages under state laws, and injunctive relief, with the matter proceeding to a jury trial.

Separately, pro-crypto lawyer John Deaton has filed an amicus brief to support Coinbase in its legal battle with the SEC. This move comes as Coinbase pushes back against the SEC’s allegations and seeks clarity on regulatory matters.

In June 2023, the SEC filed a lawsuit against Coinbase, accusing the cryptocurrency exchange of operating as an unregistered national securities exchange and broker. The SEC claims that Coinbase traded at least 13 crypto assets that should have been registered as securities.

Additionally, hundreds of Coinbase customers have sued the company over its handling of the GYEN stablecoin, alleging that Coinbase promoted and traded the GYEN token despite being aware of its high volatility, leading to significant losses for investors.

Furthermore, Coinbase’s crypto staking program is under regulatory scrutiny, with the SEC alleging that the program operates as an unregistered investment contract and security. Several U.S. states have joined the SEC’s case, accusing Coinbase of violating securities laws.

Despite these legal challenges, Coinbase has pushed back against the regulatory crackdown, with CEO Armstrong calling for clearer regulations. However, legal experts warn that the SEC’s actions could limit options for U.S. investors and increase fees as platforms turn to less-regulated markets.

These lawsuits highlight the ongoing tensions between cryptocurrency companies and financial regulators over how to classify and oversee digital assets. As the SEC intensifies its crypto enforcement, further legal battles are likely for Coinbase and other major players in the industry.

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