According to a Bloomberg analyst, Coinbase, the largest American cryptocurrency exchange, is highly likely to have at least one significant point in the US Securities and Exchange Commission (SEC) lawsuit dismissed in court. This forecast comes after Elliott Stein attended one of the hearings in the case against Coinbase. The SEC has accused the company of operating an unregistered exchange, brokerage platform, and clearing agency. Additionally, they claim Coinbase engaged in the illegal sale of securities related to staking cryptocurrencies. Despite Coinbase’s attempts to challenge the regulator’s claims, they have been unsuccessful thus far.
Stein believes that Coinbase will successfully challenge the SEC’s charges of trading violations, with a 70% chance of victory. However, other charges will pose a greater challenge for the exchange. The exchange’s definition of “investment,” which they provided to counter the SEC’s accusations, appears to be a strong defense.
In an effort to demonstrate their commitment to security, Coinbase offered assistance to the SEC after the regulator’s Twitter account was compromised, resulting in investors losing nearly a billion dollars. Furthermore, Coinbase CEO, Brian Armstrong, has consistently denied rumors about the exchange’s potential departure from the US market in favor of a more cryptocurrency-friendly country.