Coinbase’s Strong Defense
In a recent interview with Thinking Crypto, Faryar Shirzad, Chief Policy Officer at Coinbase, discussed the ongoing legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC). Shirzad emphasized Coinbase’s commitment to defending its position in the lawsuit. He revealed that Coinbase has enlisted external legal counsel who share their conviction in the case, making their defense robust.
The Token-As-Security Debate
Coinbase argues that for a cryptocurrency token to be considered a security, there must be a contractual relationship with specific representations and undertakings between the seller and buyer. Shirzad highlighted that there is no direct connection or privity between the token developer and the buyer in Coinbase’s case since Coinbase primarily operates as an exchange and secondary market. Therefore, Coinbase asserts that it does not meet the criteria for being classified as a security.
Awaiting the Judge’s Decision
Shirzad acknowledged that the final decision lies with the judge, who recently announced oral arguments scheduled for January. He expressed optimism about Coinbase’s position but recognized the need to wait for the judge’s ruling. “We’re pushing aggressively. I feel good about where we’re going to land, but you know, we’ll have to see what the judge decides,” Shirzad said.
Concerns Over SEC’s Broad Interpretation
Shirzad also raised concerns about the SEC’s expansive theory that any sale for profit could potentially be classified as a security. He argued that such an interpretation would be impractical and overly broad, drawing parallels to purchases of property, collectibles, or commodities. Coinbase maintains its firm stance while awaiting clarity from the judge’s decision.
Hopes for a Bitcoin ETF
Regarding a Bitcoin exchange-traded fund (ETF), Shirzad mentioned the recent court decision in the Grayscale case, where the court found the SEC’s actions to be “arbitrary and capricious.” He suggested that these findings could serve as a roadmap for the SEC’s decision on Bitcoin ETFs. While he couldn’t predict the exact timing, Shirzad hoped that the SEC would issue a decision soon and approve Bitcoin ETF applications.
Coinbase’s ongoing legal battle with the SEC continues to garner attention in the cryptocurrency industry. Coinbase’s leadership remains confident in their case and hopes for a swift resolution.
Hot Take: Coinbase Fights Back Against SEC
In an interview with Thinking Crypto, Coinbase’s Chief Policy Officer, Faryar Shirzad, provides insights into Coinbase’s strong defense strategy in its legal battle against the SEC. Coinbase argues that its tokens do not meet the criteria for classification as securities due to the absence of a direct connection between token developers and buyers. While awaiting the judge’s ruling, Coinbase expresses concerns over the SEC’s broad interpretation of sales for profit. Additionally, Shirzad highlights hopes for a favorable decision on Bitcoin ETFs, drawing inspiration from recent court findings. Coinbase remains confident in its position and seeks a speedy resolution to the lawsuit.
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