Legal Experts Disagree with SEC’s Definition of “Investment Contracts” in Coinbase Case
According to legal analyst Meta Lawman, six law professors from top universities are assisting Coinbase in a case against the SEC. They argue against the SEC’s classification of certain crypto tokens as “investment contracts.” The professors believe that historically, “investment contracts” referred to investors receiving a share of future money or assets. They point to a 1946 decision that supports this interpretation. This challenges the SEC’s view that some crypto tokens are investment contracts. If successful, this could have significant implications for the regulation of cryptocurrencies.
Dave Weisberger: Coinbase Case Shows SEC Overreach
Market analyst Dave Weisberger believes that the Coinbase case is a clear example of the SEC exceeding its authority, unlike the Ripple case. Weisberger suggests that the SEC’s argument in the Coinbase case lacks legal grounds, stating that “briefs like this one shred that argument.” He also notes that winning an interim appeal would not be sufficient for the SEC to succeed in the Ripple case. The SEC would need to convince the courts that token transactions unrelated to fundraising can still be considered investment contracts.
Huber Disagrees, Accuses Coinbase of Hypocrisy
In response to Weisberger’s comment, Mr. Huber disagrees and accuses Coinbase of hypocrisy. He claims that Coinbase’s own SEC filings indicate their dependence on Ethereum and Bitcoin sales. Huber suggests that Coinbase previously supported the SEC’s approach for Bitcoin and Ethereum, but now portrays themselves as fighting for the entire industry due to expired bribes.
Hot Take
The involvement of prominent law professors in the Coinbase case indicates a significant challenge to the SEC’s interpretation of “investment contracts” in the crypto industry. While some analysts see the Coinbase case as a clear example of SEC overreach, others argue against it and accuse Coinbase of hypocrisy. The outcome of these cases will have a far-reaching impact on the regulation and control of cryptocurrencies.
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