Last week was the most recent hearing in the Coinbase vs SEC case. In it, the SEC argues that Coinbase is operating as an unregistered seller of securities. The SEC is arguing that 12 or 13 tokens or coins listed on Coinbase are securities. But how is the case going?
My takeaway from the hearing
My biggest takeaway is that the Judge, Judge Fallia, does not seem to be buying what the SEC is selling. You can hear her repeatedly asking the SEC lawyer to explain why they are here in court. What it is that Coinbase is doing that they do not agree with. And the SEC´s lawyer appears to be in for a rough time. Because from what I heard in the hearing things are not looking good for the SEC. Of course, it could just be because of cherry-picked clips. But as the clips are about what is at stake in the case, I can't really see what more earth-moving things could be said that were not included.
I do get the impression that Judge Fallia is having some fun with the SEC lawyers in the clips. As the situation often appears quite bad on the border to laughable from the SEC stance. I do recommend giving the video a listen, as it is not much to look at. I found it to be a fair bit of entertainment. And in case you do not want me to spoil the ending you should not read on.
There is no decision on whether or not the case is dismissed. they do bring up some interesting points, or "what ifs" if you like. What would happen if the SEC won? And it would appear to open the door to collectibles or commodities. As with the SEc standard they are arguing would be an almost logical conclusion that a case pertaining to those things would pop up and more or less use an SEC win as legal president. And Judge Fallia appears to be completely aware of the ramifications and how it could be used down the line.
While we did not get a ruling on whether the case will be dismissed or not, I think the odds are in clear favor of a dismissal. And if it would go to court I am hard-pressed to see the SEC winning.
But what are your thoughts on this, do you think the SEC has a chance, or is this a clear case of their overreach? Please let me know in the comment section below.
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