Legal researcher Elliott Stein recalls leaving the courtroom with a significantly more optimistic outlook on cryptocurrency exchange Coinbase's chances of securing a victory.
Bloomberg senior litigation analyst Elliott Stein has indicated he sees minimal likelihood of failure for cryptocurrency exchange Coinbase in its ongoing lawsuit against United States Securities and Exchange Commission (SEC). Stein forecasts a 70% chance of the exchange securing a full dismissal in the lawsuit.
In a recent post on Jan. 19 on X (formerly Twitter), Stein explained that before he went into the courtroom he was confident that Coinbase would be able to object successfully to certain SEC claims, but not those allegations relating to its staking rewards program and overall operational structure. However, his confidence shifted after the five-hour hearing.
The SEC alleges that by staking customers' assets, earning rewards on their behalf, and subsequently returning them, Coinbase is engaging in the offer and sale of investment contracts, thereby falling under SEC regulation.
