An analyst for Bloomberg Intelligence placed Coinbase’s chances of prevailing in its legal battle with the U.S. Securities and Exchange Commission (SEC) at an optimistic 70%.
In a Jan. 19 post on social media platform X (formerly Twitter), Elliot Stein, Bloomberg Intelligence’s senior litigation analyst, suggested that the cryptocurrency trading platform was likely to secure a complete dismissal of the regulatory case based on developments in the recent court hearing.
“I went into SEC v. Coinbase hearing thinking COIN would, on this motion, win dismissal of SEC’s primary claims (concerning trading) but maybe not staking and broker claims. I left thinking COIN would win full dismissal,” Stein stated.
CryptoSlate previously reported that Judge Katherine Polk Failla questioned why she should not dismiss the case, considering Coinbase’s stance finds support from influential stakeholders like Senator Cynthia Lummis.
Why Coinbase could win
Stein revealed that Judge Failla wanted the SEC to define “investment contract,” excluding collectibles.
The analyst further explained that Coinbase’s proposed definition of the term was more persuasive as it emphasized the necessity of investing in a business rather than merely an ecosystem, coupled with the presence of an enforceable action.
Throughout the case, Coinbase has consistently asserted that its platform does not facilitate trading “investment contracts.”
The company’s Chief Legal Officer, P
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Author: Oluwapelumi Adejumo
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