Cryptocurrency Investment: SOL, ADA and other tokens accused of being unregistered securities

Coinbase is caught up in securities lawsuit again: Cryptocurrency Investments such as SOL and ADA are accused of being unregistered securities

On July 28, 2025, the U.S. District Court for the Northern District of California accepted a class action lawsuit against Coinbase, accusing it of illegally listing and trading Cryptocurrency Investments such as SOL (Solana) and ADA (Cardano), believing that these Cryptocurrency Investments are unregistered securities, causing investors to suffer losses. Affected by this news, Coinbase's stock price (NASDAQ: COIN) fell 2.7% after the market, and the market was worried about the increased regulatory risks.

1. Core allegations of the lawsuit

Dispute over the nature of Cryptocurrency Investment: The plaintiff (representing investors from 2021 to date) claimed that Cryptocurrency Investments such as SOL and ADA meet the Howey Test standard (i.e., "investment contracts") and should be classified as securities and need to be registered with the SEC.

Platform responsibility: As a trading intermediary, Coinbase failed to fulfill its disclosure obligations for securities assets and is suspected of misleading investors.

Amount of claim: The specific amount has not been disclosed, but referring to similar cases in 2023 (such as the Ripple case), it may involve hundreds of millions of dollars.

2. Cryptocurrency Investment involved and market reaction

Cryptocurrency Investment performance:

SOL briefly fell 3.5% and then rebounded, and the current price is $168 (24 hours +1.2%).

ADA fluctuated slightly, at $0.48 (24 hours -0.8%).

Industry association:

In 2023, the SEC sued Coinbase for unregistered securities trading business, but did not clearly list the Cryptocurrency Investment list. This lawsuit may prompt the SEC to redefine the attributes of Cryptocurrency Investment.

3. Coinbase's response strategy

Legal defense:

Coinbase is expected to cite the principle of "major unresolved legal issues" and claim that the regulatory framework for Cryptocurrency Investment is still unclear.

It may cite some of the winning precedents in the Ripple case (XRP programmatic sales do not constitute securities).

Business adjustments:

If the risk of losing the lawsuit increases, some Cryptocurrency Investment may be proactively delisted (such as delisting XRP in 2023 and then relisting it).

Accelerate the promotion of overseas compliance markets (such as the EU MiCA license).

4. Regulatory background and industry impact

SEC position:

SEC Chairman Gary Gensler has repeatedly emphasized that "most Cryptocurrency Investments are securities", but the court rulings are inconsistent (such as Ripple and Coinbase partially won the case).

In 2025, the SEC will focus on cracking down on pledge services and exchange compliance, and this lawsuit may become a new breakthrough.

Exchange risks:

If Coinbase loses the case, platforms such as Binance and Kraken may face similar lawsuits.

Small and medium-sized exchanges may be forced to delist highly controversial Cryptocurrency Investments and switch to pure BTC/ETH transactions.

5. Investor response suggestions

Short-term risk aversion:

Pay attention to the changes in exchange positions of Cryptocurrency Investments such as SOL and ADA, and be wary of the risk of a sudden drop in liquidity.

Diversify the allocation to less controversial assets such as BTC and ETH.

Long-term observation:

The case trial cycle may take up to 1-2 years, and the final result will affect the US crypto regulatory framework.

Pay attention to the legal reserve provision in Coinbase's Q2 financial report.

Outlook: This case may become another landmark lawsuit after Ripple, further clarifying the applicable boundaries of securities law in the crypto field. The industry needs to prepare for "differentiated regulation by currency", and the compliance process may be accelerated.

Data as of 20:00 UTC on July 28, 2025