Bloomberg Analyst Estimated A 70% Chance Coinbase Wins Against SEC

Bloomberg Analyst Estimated A 70% Chance Coinbase Wins Against SEC

According to the latest reports, a Bloomberg analyst has estimated the fact that there is a 70% chance of Coinbase winning in the SEC case. Check out the latest reports about this below.

Coinbase vs. SEC

According to a Bloomberg intelligence analyst, Coinbase, a popular cryptocurrency exchange platform in the US, has a 70% chance of winning a motion to dismiss the lawsuit filed against it by the US Securities and Exchange Commission (SEC).

In a recent thread, the analyst, Elliott Stein, stated that he initially thought Coinbase would only be able to dismiss the SEC’s accusations regarding the violation of trading laws, but not the other claims.

However, after attending the court hearing, Stein now believes that Coinbase has a good chance of winning a full dismissal.

According to Stein, he found Coinbase’s definition of “investment contract” more compelling compared to the SEC’s. He believes this will also defeat the regulator’s other claims against the crypto exchange.

“Coinbase 70% likely to win. Coinbase is likely to win this motion, we think. The judge wanted a limiting principle to the SEC definition of ‘investment contract’ that wouldn’t encompass collectibles. We view the one offered by Coinbase as more compelling, requiring investment in a business versus just an ecosystem, along with an enforceable obligation.

As the Ripple ruling in July suggested, sales of digital assets on public exchanges don’t fit neatly into the Howey test for what constitutes an investment contract. Even if the case survives, it likely reaches the Supreme Court, which we think will narrow Howey. Coinbase’s definition of ‘investment’ would also beat the SEC’s staking claim.

And Coinbase had good arguments that the SEC’s allegations don’t sufficiently plead that it was performing broker functions.”

The Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase in June 2023, alleging that the company was involved in the sale of unregistered securities and was operating an unregistered exchange/broker agency.




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