![](https://procoinnews.com/wp-content/uploads/2022/09/PCN-Stock-Coinbase-1200x630.jpg)
The Latest Update On The Coinbase V SEC Lawsuit
• October 24, 2023 1:16 pm • CommentsIt’s no secret that the Securities and Exchange Commission is openly hostile toward cryptocurrency.
The government agency has targeted Ripple Labs, LBRY, Binance, Coinbase, and a whole host of smaller crypto firms and blockchain projects.
Thus far, only one of the aforementioned blockchain companies has managed to best the SEC. Coinbase is hoping to join Ripple Labs in its historic victory against the federal bureau with a resounding victory of its own.
Coinbase, a centralized crypto exchange, has been locked in a legal battle with the SEC for months and is looking to have the entire case thrown out.
According to sources, Coinbase will present its arguments to the court on Tuesday, in hopes that the judge will throw out the SEC’s entire case.
Mishel Pettit summed up Coinbase’s legal argument: “Coinbase is ready to present evidence in its case with the SEC over unregistered securities. Tokens that are traded on the exchange are not investment contracts (and therefore securities). The SEC is violating the provision that federal agencies cannot regulate new areas.”
Coinbase is ready to present evidence in its case with the SEC over unregistered securities.
– tokens that are traded on the exchange are not investment contracts (and therefore securities);
– The SEC is violating the provision that federal agencies cannot regulate new areas pic.twitter.com/0wd9ubGtZ0— Mishel Pettit (@MishelNFT) October 24, 2023
Coinbase’s Chief Legal Officer recently sat down with CNBC and told the financial outlet: “Judges are scrutinizing the SEC’s interpretation of US securities law, even challenging the very notion of whether Tokens are Securities at all.”
🚨🚀 MUST WATCH : Coinbase CLO on CNBC reveals, "Judges are scrutinizing the SEC's interpretation of US securities law, even challenging the very notion of whether Tokens are Securities at all."
🌐 US Clarity emerges through the courts. Ripple's victory over the SEC in regards… pic.twitter.com/vFgUjYfJ49
— Good Morning Crypto (@3TGMCrypto) October 21, 2023
Blockworks reports:
According to a person familiar with the matter, Coinbase’s reply brief will focus on the exchange’s case — that the SEC is violating the major questions doctrine, which prevents agencies from engaging in issues Congress has not yet ruled on.
Judge Katherine Polk Failla could rule immediately and dismiss the case on Tuesday. A more likely outcome: opt to bring both parties in to present oral arguments. From there the case could then be dismissed, or move on to a jury trial or summary judgment.
Pro-XRP attorney John Deaton weighed in on the Coinbase V SEC lawsuit:
“I believe Judge Failla could issue a huge victory to Coinbase and the Crypto industry at large by deciding, as matter of law, Howey does not apply to secondary market blind bid/ask transactions.
As I argued in my amicus brief in the Ripple/XRP case, there isn’t a single case in EIGHTY YEARS where a Court found a secondary sale of an asset satisfied the Howey test – even if the asset had been sold originally as an investment contract.”
As I argued in my amicus brief in the @Ripple XRP case, there isn’t a single case in EIGHTY YEARS where a Court found a secondary sale of an asset satisfied the Howey test – even if the asset had been sold originally as an investment contract.
— John E Deaton (@JohnEDeaton1) October 23, 2023
Deaton went on: “In the Coinbase case, the SEC also doesn’t allege the kind of evidence alleged in Terra Labs. Therefore, a reasonable judge could find that Howey doesn’t apply to blind bid/ask transactions made on exchanges like Coinbase and thus, dismiss that portion of the case.”
In the Coinbase case, the SEC also doesn’t allege the kind of evidence alleged in Terra Labs. Therefore, a reasonable judge could find that Howey doesn’t apply to blind bid/ask transactions made on exchanges like Coinbase and thus, dismiss that portion of the case.
— John E Deaton (@JohnEDeaton1) October 23, 2023
Earlier this year, CNN Business explained:
The lawsuits against Coinbase and Binance could help force the regulation issue by sparking litigation and, ultimately, judicial reviews that motivate Congress to act.
Shares of Coinbase, which went public in 2021, were up around 4% early Monday. The stock is up nearly 200% this year.
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.