The Sandbox

COIN

Internet Computer

Axie Infinity

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/key-insights-from-the-coinbase-lawsuit-against-the-sec/" data-wpel-link="internal">Key Insights from the Coinbase Lawsuit Against the SEC</a> 
Bloomberg senior litigation analyst Elliott Stein provided notable comments on the ongoing lawsuit of the cryptocurrency exchange Coinbase against the United States Securities and Exchange Commission (SEC). Stein shared the details of the issue with his followers on <a href="https://newslinker.co/category/social-media/" data-wpel-link="exclude">social media</a> platform X in his latest post on January 19. 
<h2 class="p1" style="text-align: justify" id="noteworthy-details-in-the-coinbase-case">Noteworthy Details in the Coinbase Case</h2> 
Regarding the case, Stein was confident before entering the courtroom that Coinbase officials could successfully contest certain SEC allegations but would not be able to dispute claims related to their staking rewards program and overall operational structure. However, after a five-hour hearing, Stein’s confidence was shaken: 
<blockquote> 
 “I entered the SEC and Coinbase hearing thinking COIN might win the dismissal of the SEC’s primary allegations but perhaps not the staking and broker claims. I left thinking COIN might win the dismissal of the case entirely.” 
</blockquote> 
The SEC claims that Coinbase engaged in offering and selling investment contracts by allowing customers to earn rewards by staking their assets and then returning them, thus falling under SEC regulation. 
Furthermore, the regulatory body alleges that Coinbase operates as an unlicensed exchange. Meanwhile, Coinbase vehemently denies this, stating that there is no straightforward path for a crypto exchange to register for a license. However, Stein pointed out that Coinbase’s presentation of a more definitive investment contract definition compared to the SEC’s was a turning point: 
<blockquote> 
 “In my view, the definition presented by Coinbase is more compelling, requiring investment in a business and a viable obligation, not just an ecosystem.” 
</blockquote> 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-305405" src="https://coin-turk.com/wp-content/uploads/2024/01/elliott-tweet.png" alt="" width="500" height="667"> 
<h2 class="p1" style="text-align: justify" id="ripple-case-may-set-a-precedent">Ripple Case May Set a Precedent</h2> 
Additionally, Stein referenced the recent Ripple vs. SEC case in which Ripple achieved a partial victory in July 2023. The judge ruled that individual sales of XRP on cryptocurrency exchanges were not considered securities. Stein suggested that the securities-related decision in this case might create a domino effect on Coinbase’s lawsuit: 
<blockquote> 
 “As indicated in the Ripple decision of July, crypto asset sales on public exchanges do not fully comply with the Howey test for what constitutes an investment contract.” 
</blockquote> 
SEC filed a lawsuit against Coinbase on June 6, 2023, alleging that the crypto exchange violated federal securities laws. The SEC argued that 13 listed crypto assets on Coinbase, including Solana (SOL), Cardano (<a href="https://en.coin-turk.com/why-are-whales-abandoning-cardano-ada/" data-wpel-link="internal">ADA</a>), Polygon (MATIC), Filecoin (FIL), The Sandbox (SAND), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), NEAR (NEAR), Voyager (VGX), Dash (DASH), and Nexo (NEXO), are securities. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/key-insights-from-the-coinbase-lawsuit-against-the-sec/" data-wpel-link="internal">Key Insights from the Coinbase Lawsuit Against the SEC</a></h5>

Key Insights from the Coinbase Lawsuit Against the SEC

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