Coinbase SEC Hearing ends in a lackluster manner, according to a cryptocurrency legal expert who attended the hearing. The lawyer stated that there were no significant highlights during the 5-hour session and no knockout blows from either side. The hearing was part of Coinbase’s attempt to dismiss the charges brought against it by the SEC.
During the hearing, the question of whether cryptocurrencies are considered securities was raised. Both sides agreed that cryptocurrencies themselves are not securities. However, once they are traded on platforms like Coinbase, they can be classified as securities. The SEC argued that transactions of tokens on Coinbase can constitute sales of investment contracts.
The legal expert noted that the SEC appeared more prepared in this hearing compared to the previous one in mid-2023, where they were caught off guard. Coinbase had filed a petition in August 2023 to dismiss the lawsuit, following Ripple’s partial victory against the SEC.
Coinbase has been seeking to have the lawsuit dismissed for some time. The SEC filed lawsuits against Coinbase in June 2023, alleging the offering of unregistered securities and violation of business registration requirements. The decline in Coinbase’s share price indicated a drop in investor sentiment.
The SEC’s case centers around Coinbase’s token and staking services, arguing that they are securities. Coinbase, on the other hand, disputes this claim and criticizes the fundamental problem with the case. A dismissal of the lawsuit could bring more clarity to the industry.
In a separate development, Coinbase’s chief legal officer offered assistance to the SEC after the regulator’s X account was compromised. The breached account led to a premature statement suggesting the SEC’s approval of all spot Bitcoin exchange-traded fund applications. However, the official announcement from the SEC was made a day later.
Overall, the hearing did not provide any significant breakthroughs and the conflict between Coinbase and the SEC continues.