Analyst says Coinbase has 70% chance of winning case against SEC

A Bloomberg analyst believes that the Coinbase exchange has a strong chance of emerging victorious in the legal battle with the SEC. Elliot Stein, a senior forensic analyst, observed the recent hearing and concluded that there is a high likelihood of the court completely rejecting the Commission’s claims against Coinbase. The first hearing in the SEC case against Coinbase took place on January 17, 2024. Stein’s analysis aligns with the sentiments of other experts who anticipate a prolonged and complex legal process for Coinbase. Notably, Coinbase has countered allegations of conducting unlicensed activities from the SEC, asserting that the tokens in question are not securities or investment contracts. The exchange also claims that the SEC has not provided any evidence to support its accusations. Based on the hearing, Stein assigns Coinbase a 70% chance of prevailing against the SEC, contrary to his initial expectation of a partial victory for the exchange. The analyst finds Coinbase’s arguments reasonable and legally sound, leading him to anticipate a full rejection of the SEC’s claims by the court. This development may prolong the duration of the trial, echoing the protracted Ripple-SEC lawsuit. In response to accusations of “poaching” personnel from government agencies leveled by Senator Warren, Coinbase has previously defended its actions.