According to Reuters, a U.S. federal judge ruled on Friday that the crypto exchange Coinbase must face lawsuits from clients who accused the exchange of illegally selling securities without registering as a brokerage dealer. U.S. District Judge Paul Engelmayer, based in Manhattan, New York, dismissed Coinbase’s argument that Coinbase does not qualify as a “statutory seller” under federal securities laws because it never transfers ownership of 79 tokens traded by clients. The judge cited the allegation: "The customer on Coinbase only trades with Coinbase itself", which is enough to conclude that Coinbase is the seller. Engelmayer also refused to dismiss allegations under California, Florida and New Jersey laws, saying customers have sufficiently accused Coinbase of the seller who directly sells the tokens. "Coinbase does not list, provide or sell securities on its exchange. We look forward to defending the remaining charges in the district court," Coinbase said in a statement.