Coinbase Will Probably Win SEC Case: Expert
What sets a security apart from a collectible? This is the main issue in the Securities and Exchange Commission’s lawsuit against Coinbase, as the agency claims that the company sold unregistered securities and operated an unlicensed staking service.
However, after facing tough questions from Judge Katherine Polk Failla, the SEC’s lawyers have come under scrutiny for their broad definition of collectibles.
As a result, a Bloomberg analyst has predicted that Coinbase may have an advantage in the case. According to senior litigation analyst Elliott Stein, the judge requested a more specific definition of “investment contracts” that would not include collectibles.
Coinbase’s argument, which suggests that investment contracts only pertain to businesses rather than broad ecosystems, was viewed by Bloomberg as more convincing.
The company’s lawyers pointed out that not all cryptocurrency purchases can be considered investment contracts, drawing a comparison to investing in a company versus simply buying its products.
