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2024

Uniswap

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 <p class="is-style-lead">The Coinbase vs. SEC case takes center stage as the leading exchange is set to argue why its traded tokens are not unregistered securities.&nbsp;</p>
 <p>In June 2023, the SEC sued Coinbase, alleging the exchange traded 13 unregistered <a rel="noopener noreferrer nofollow" title="securities" href="https://thebittimes.com/tag/securities.html">securities</a>. The case is being heard by Judge Katherine Polk Failla today in the Southern District of New York. Insider reports from the hearing have revealed arguments and questions being asked by Judge Katherine Polk Failla.<br><br>The judge scrutinized the Securities Act of 1933 as outdated by quoting pro-Bitcoin Senator Cynthia Lummis’ statement that the <a rel="noopener noreferrer nofollow" title="90-year-" href="https://thebittimes.com/tag/90-year.html">90-year-</a>old law does not consider new technologies like Bitcoin. The Securities Act of 1933 has been the SEC’s go-to guideline for most crypto cases.&nbsp;</p>
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    <p lang="en" dir="ltr">*EDITING FOR CLARITY* <br><br>Failla just asked the @SECGov why she shouldn’t listen to @SenLummis who says Failla should dismiss the case. <br><br>“She’s not just a random Senator, she’s someone deeply involved in the space. Why is she wrong?” <br><br>SEC lawyer says a Senator’s opinion…</p>— Eleanor Terrett (@EleanorTerrett) January 17, 2024
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 <p>A key moment in today’s proceedings occurred when Judge Failla queried the SEC lawyer about Bitcoin’s status as a potential replacement for fiat currency. The SEC lawyer’s response highlights Bitcoin’s distinctiveness due to its lack of an encompassing ecosystem, unlike other tokens that embody a broader investment landscape.</p>
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 <p>Judge Failla’s concern lies in whether the SEC’s expansive definition of <a rel="noopener noreferrer nofollow" title="securities" href="https://thebittimes.com/tag/securities.html">securities</a> could inadvertently encompass a wider range of digital assets, thus impacting investors who might have unknowingly purchased <a rel="noopener noreferrer nofollow" title="securities" href="https://thebittimes.com/tag/securities.html">securities</a>. The SEC lawyer affirmed that a favorable ruling for them would classify the disputed tokens as investment contracts, thus potentially granting purchasers the right of rescission or a chance to annul their purchases.</p>
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    <p lang="en" dir="ltr">Coinbase lawyer on the @SECGov’s argument that Coinbase is ignoring <a rel="noopener noreferrer nofollow" title="securities" href="https://thebittimes.com/tag/securities.html">securities</a> laws: <br><br>“It’s not we who are unwilling to faithfully apply the case law, it’s the Commission. They are trying to stuff these transactions [into Howey] when they don’t belong there. We think that’s…</p>— Eleanor Terrett (@EleanorTerrett) January 17, 2024
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 <p>The Coinbase legal team, countering the SEC’s allegations, argued that not all tokens on their platform are devoid of investment contract characteristics. However, they emphasized that the SEC’s complaint lacks substantive allegations to categorically prove that the 13 tokens in question fulfill the criteria of being <a rel="noopener noreferrer nofollow" title="securities" href="https://thebittimes.com/tag/securities.html">securities</a>.</p>
 <p>Coinbase’s lawyers also referenced the Uniswap case, previously presided over by Judge Failla, to bolster the argument regarding the platform’s non-responsibility for third-party activities. The analogy draws a parallel with the current scenario, emphasizing the technological neutrality of platforms like Coinbase.</p>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Coinbase dominance over Bitcoin ETF custody raises concerns
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/coinbase-vs-sec-judge-scrutinizes-90-year-old-securities-act-tbt76908.html">https://thebittimes.com/coinbase-vs-sec-judge-scrutinizes-90-year-old-securities-act-tbt76908.html</a></p>

Coinbase vs. SEC: Judge scrutinizes 90-year-old securities act

TheBitTimes

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