12:59 PM EDT, 04/05/2024 (MT Newswires) -- A US appeals court on Friday reopened a consumer lawsuit against Coinbase (COIN) that alleges the cryptocurrency exchange facilitated the sale of unregistered securities, Bloomberg reported.

A three-judge appeals panel of the 2nd US Circuit Court of Appeals said the prior ruling dismissing the case relied on an updated version of Coinbase's user agreement and sent the lawsuit back to the district court in New York to determine which user agreement should be used to decide whether to dismiss the class-action suit.

The 2021 complaint stemmed from language in the company's then user agreement that allegedly said the company held title to the digital assets that were bought and sold on the platform.

Meanwhile, the appeals court upheld the dismissal of claims to rescind some transactions from Coinbase under the US Securities and Exchange Act, the report said.

Coinbase did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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