By: Isha Das
The legal battle between Coinbase, the cryptocurrency trading platform, and the U.S. Securities and Exchange Commission (SEC) appears to be leaning in favor of Coinbase. This claim comes from Bloomberg Intelligence's senior litigation analyst, Elliot Stein, who optimistically placed Coinbase's chances of prevailing at 70%.
In recent courtroom proceedings the presiding judge, Katherine Polk Failla, questioned the SEC's categorization of investment contracts which could potentially dismiss the case. Coinbase's stance of not facilitating trade of 'investment contracts' has been consistent throughout, garnering support from influential stakeholders like Senator Cynthia Lummis.
Stein explained that Judge Failla asked for a defined 'investment contract', excluding collectibles. He also highlighted Ripple's recent victory against the SEC as an argument supporting the insufficiency of the traditional Howey Test to determine digital asset sales on public exchanges.
In conclusion, the high potential of Coinbase winning this lawsuit looks promising as arguments sway in their favor against the long-standing enforcement powers of the SEC.
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