Litigation analyst Elliott Stein thinks Coinbase will win full dismissal of the SEC’s current lawsuit against the exchange.
Stein also correctly predicted Grayscale’s landmark victory over the SEC last year, which set the motion for spot Bitcoin ETFs earlier this month. Coinbase’s argument, perceived as more persuasive, hinges on the investment needing to be in a business and not merely an ecosystem, and it should come with an enforceable obligation.
The perspective gained traction following a precedent set by the Ripple case, where the sale of digital assets on public exchanges was determined not to fit snugly within the established Howey test, a legal standard used to determine what constitutes an investment contract.
Stein forecasts that even if the lawsuit progresses, it could ultimately be escalated to the Supreme Court. There, it is anticipated that the definition might be narrowed, which would favor Coinbase. The exchange’s definition of “investment” is deemed strong enough to counter the SEC’s claims regarding staking. Also, the SEC’s allegations lack sufficient detail to establish that Coinbase acted in a broker capacity.
SEC sued Coinbase last June, alleging the exchange traded 13 tokens that act as unregistered securities. The court recently
Go to Source to See Full Article
Author: Mohammad Shahidullah
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
