SEC v. @Coinbase, Update
The hearing on Coinbase’s Motion for Judgment on the Pleadings will be held on Wednesday, Jan 17.
There are four possible outcomes, with potential permutations to each. 👇
The hearing on Coinbase’s Motion for Judgment on the Pleadings will be held on Wednesday, Jan 17.
There are four possible outcomes, with potential permutations to each. 👇
Option 1. Judge Denies the Coinbase Motion.
It’s a low bar for the SEC.
To win, all the SEC has to show is they have alleged facts making their claim “plausible.”
The case moves on to discovery for a year or more until motions for summary judgment (like in @Ripple).
It’s a low bar for the SEC.
To win, all the SEC has to show is they have alleged facts making their claim “plausible.”
The case moves on to discovery for a year or more until motions for summary judgment (like in @Ripple).
Option 2. Judge Grants @Coinbase's Motion "with prejudice."
This means the entire case is dismissed.
It’s all over at the District Court.
The SEC moves on to appeal at the Second Circuit Court of Appeals.
This means the entire case is dismissed.
It’s all over at the District Court.
The SEC moves on to appeal at the Second Circuit Court of Appeals.
Option 3. Judge Grants motion “without prejudice.”
SEC gets a chance to amend the complaint to cure deficiencies cited by the judge.
But, if the court rules the SEC lacks authority from Congress to regulate crypto exchanges, there would be no point in allowing an amendment.
SEC gets a chance to amend the complaint to cure deficiencies cited by the judge.
But, if the court rules the SEC lacks authority from Congress to regulate crypto exchanges, there would be no point in allowing an amendment.
Option 4. Judge Grants motion with respect to the claims relating to the 13 crypto tokens, but Denies with respect to the staking service.
The case would then move on to discovery, focused only on the staking service and whether it qualifies as an investment contract.
The case would then move on to discovery, focused only on the staking service and whether it qualifies as an investment contract.
The judge almost certainly will not rule at the hearing.
But, it is possible she will leave some hints through her questioning.
I will be in court in New York on Wednesday to see what I can see.
I will share my views on which outcome is most likely after the hearing.
But, it is possible she will leave some hints through her questioning.
I will be in court in New York on Wednesday to see what I can see.
I will share my views on which outcome is most likely after the hearing.
Judge Failla understands the stakes are enormous in this case.
I would expect her to issue a ruling quickly.
"Quickly" for me would mean in under three months.
You can listen in to the hearing live at 10 am EST on Wednesday by dialing:
(888) 363-4749
Access code 5123533
I would expect her to issue a ruling quickly.
"Quickly" for me would mean in under three months.
You can listen in to the hearing live at 10 am EST on Wednesday by dialing:
(888) 363-4749
Access code 5123533
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