A federal judge in Manhattan on Wednesday ruled the case between the U.S. Securities and Exchange Commission (SEC) and crypto exchange Coinbase can move forward.

According to the ruling by Judge Katherine Polk, Coinbase has operated as an unregistered intermediary of securities–thanks in large part to the “well-pleaded allegations” of the Complaint by the SEC.

“The Court finds that the SEC adequately alleges that Coinbase, through its staking program, engaged in the unregistered offer and sale of securities,” read the latest ruling.

The lawsuit was filed on June 6 by the SEC, which argued that the largest exchange in the country was violating the nation’s securities rules and regulations.