Coinbase would have a 70% chance of winning against the SEC

Coinbase would have a 70% chance of winning against the SEC

Coinbase vs SEC. In some cases, persistence really pays off. In others, it can quickly take the form of a unjustified harassment at the expense of the seriousness of the one who refuses to surrender. A relatively clear boundary that the boss from Securities and Exchange Commission (SEC) However, it seems he does not know the United States. Fortunately, justice is there to decide. Because within a lawsuit filed against the Coinbase platform, over the past year it seems the dice have already been cast. In fact, there would be 70% chance that Coinbase will win…

The SEC gets bogged down in its lawsuit against Coinbase

In his policy against cryptocurrenciesThe SEC is a bit like a train conductor who wants to crack down on digital tickets presented on smartphones. Because his strategy seems to boil down to trying to bend reality to fit it the dusty framework of its regulatory jurisdiction. And without worrying about whether it is fair, justified or even legal.

An exasperating exercise for crypto players made in the USA to be forced to deal with Gary Gensler determined to fight. And this despite everyone eagerly demanding clearer regulations on the very sensitive topic of cryptocurrencies.

The SEC gets bogged down in its lawsuit against Coinbase

But nothing can be done, the SEC is sticking to its positions. And while the Coinbase platform tried to calm things down asking (again) for an explanation, she only got a lawsuit for that.

An investigation during which SEC counsel had great difficulty responding to questions from Judge Katherine Polk Fail, which is in charge of this matter. Because when she asked last week if token issuers named in the complaint violated securities laws, he simply replied, “Well, not really, Your Honor.” Everything is said!

“I’m smiling, sir, because that’s something your friends at the back table are saying, wondering why we’re here. »

Judge Katherine Polk Failla

Coinbase: 1 – SEC: 0

A legal imbroglio at the center of which SEC accuses Coinbase platform of sell unregistered securities and running a betting program without using the relevant licenses. But in the war of definitions applied to cryptocurrencies, Bloomberg litigation specialist Elliott Stein found out Coinbase Claims ‘More Convincing’.

“Judge Wanted Limiting Principle for SEC Definition of “Investment Agreement”; this would not include collectibles. We find the one proposed by Coinbase to be more compelling, requiring investment in the company rather than just the ecosystem, as well as an enforceable commitment. »

Elliott Stein

Indeed, Coinbase’s lawyers did a clear difference when it comes to buying cryptocurrencies. They say it’s the difference between “investing in Beanie Baby Inc. and buying Beanie Babies.” Another point of contention is whether bitcoin it has—or according to the SEC—an ecosystem. So they are unaware of the existence of our lovely maximalists?

A situation that clearly tips the scales in favor of Coinbase. Specialist Bloomberg really approaches this problem 70% chance of a good result cryptocurrency exchange platform. And even if that process were to proceed, “it will probably go to the Supreme Court, which we think will limit the scope Howey’s test ”, a widely used SEC.

So many debatable points that demonstrate illegitimacy SEC in the matter of cryptocurrencies, on which it nevertheless imposes its harassing power. And while Coinbase tries to calm down, Gary Gensler is preparing his response face more forced than voluntary approval Spot bitcoin ETF. A case that promises many more episodes.

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