Litigation Analyst Gives Coinbase a 70% Shot at Full Dismissal in SEC Case
According to Bloomberg senior litigation analyst Elliott Stein, the major US-based crypto exchange Coinbase might be looking at a favorable outcome in its legal battle against the US Securities and Exchange Commission (SEC).
In a recent post on X, Stein shared his analysis of the case and expressed a 70% confidence in Coinbase securing a full dismissal in the ongoing lawsuit.
Initially, Stein anticipated that Coinbase might successfully object to certain SEC claims but could face challenges regarding allegations related to its staking rewards program and overall operational structure. However, after a five-hour hearing, his outlook changed.
“I went into SEC v. Coinbase hearing thinking COIN would, on this motion, win dismissal of SEC’s primary claims (concerning trading) but maybe not staking and broker claims. I left thinking COIN would win full dismissal,” Stein wrote in the X post.
I went into SEC v. Coinbase hearing thinking $COIN would, on this motion, win dismissal of SEC's primary claims (concerning trading) but maybe not staking and broker claims. I left thinking COIN would win full dismissal. Snippet below and full note here: https://t.co/UfjiByMLzS https://t.co/7Y2Z93Nrwt pic.twitter.com/yLUUEwdVkl
— Elliott Z. Stein (@NYCStein) January 19, 2024
The SEC has accused Coinbase of offering investment contracts (also known as securities) by staking customer assets. The exchange has received staking rewards in returns, which it has paid back to its customers.
Additionally, the regulator alleges that Coinbase operated as an unregistered broker.
Coinbase, on its end, has rejected the claims, and focused its defense on the difficulty it has faced in registering with the SEC for a license.
According to Stein, a pivotal moment in
