CDS Crypto News A New Development in Coinbase and SEC Case: Can Coinbase Win a Dismissal?
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A New Development in Coinbase and SEC Case: Can Coinbase Win a Dismissal?

New developments in the Coinbase and SEC case have divided experts.

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A New Development in Coinbase and SEC Case: Can Coinbase Win a Dismissal?

Crypto News – After just one court hearing this week, legal experts familiar with the matter speculate that Coinbase may be winning its legal struggle against federal regulators.

A New Development in Coinbase and SEC Case: Can Coinbase Win a Dismissal?

Elliot Z. Stein, Senior Litigation Analyst at Bloomberg, tweeted on Friday that he gave Coinbase a 70% chance of winning its move to have all SEC accusations against it dismissed after hearing the cryptocurrency exchange’s oral arguments on Wednesday.

Coinbase is likely to win this motion, we think,

Stein

Judge Katherine Polk Failla requested that the SEC define investment contracts in a way that would exclude harmless collectibles like Beanie Babies. Stein emphasized this request.

Coinbase’s definition, on the other hand, which would have required cryptocurrency investors to buy a stake in a business as opposed to just an environment, struck him as much more persuasive. By this measure, Coinbase’s staking-as-a-service venture and cryptocurrency sales on its platform would be outside the SEC’s jurisdiction.

Even if the case survives, it likely reaches the Supreme Court, which we think will narrow Howey,

Stein

Contrary to the Majority, Joe Carlasare Has a More Negative View

Partner at Amundsen Davis legal firm Joe Carlasare was far less optimistic about Coinbase’s prospects for success. Even though Coinbase made strong arguments and is probably going to prevail in certain instances, it is quite unlikely that a motion to dismiss will result in the dismissal of all claims.

I think outright dismissal of all claims is less than 30% (likely). Under a motion to dismiss, the complaint must be liberally construed in the plaintiff’s favor, and all facts pleaded in the complaint must be taken as true. Coinbase must prove effectively that all of the SEC’s claims are legally insufficient. That’s a hefty burden.

Carlasare
A New Development in Coinbase and SEC Case: Can Coinbase Win a Dismissal?
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lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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