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Coinbase SEC Hearing Falls Short, According to Crypto Legal Expert

Press Releases Crypto News BeInCrypto Coinbase SEC Hearing Falls Short, According to Crypto Legal Expert

The conflict between the United States Securities and Exchange Commission (SEC) and crypto exchange Coinbase persists, marked by a lackluster 5-hour hearing today, as reported by a crypto lawyer in attendance.

“There were no knockout blows delivered by either side and, frankly, not a lot of high points over the course of the 5 hour hearing,” he stated.

Extended Hearing in Coinbase vs. SEC Case

MetaLawMan, in a thread on X (formerly Twitter), informs his 32,200 followers about today’s lengthy court hearing. The hearing marks Coinbase’s attempt to dismiss the SEC’s charges against the crypto exchange.

“As expected, there was no ruling from the Judge.”

However, he noted that the debate over whether cryptos are a security came up. Both participants concurred that cryptocurrencies at their fundamental level are not deemed as securities. However, once traded on a crypto exchange such as Coinbase, they do fulfill the criteria for being classified as securities.

“There was a general consensus that tokens are not “in and of themselves securities” but the SEC argued, nonetheless, that transactions of tokens on secondary trading platforms like Coinbase can still constitute sales of investment contracts.”

The lawyer emphasized that this time around, the US regulator was more prepared for its case. In comparison to the mid-2023 hearing against Coinbase when they were caught off guard.

“The SEC lawyers were better prepared than when they were caught flat footed in July and were generally effective making their case,” he further stated.

In August 2023, Coinbase petitioned the federal court to dismiss the lawsuit. This came shortly after Ripple achieved a partial victory against the SEC.

On July 13, Judge Analisa Torres in the Southern District of New York declared that XRP was not deemed a security when traded on exchanges.

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Author: Ciaran Lyons

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