Bloomberg senior litigation analyst, Elliott Stein, posted on Twitter that he believes the likelihood of cryptocurrency exchange Coinbase losing in its lawsuit against the U.S. Securities and Exchange Commission (SEC) is very low. He predicts that there is a 70% chance that Coinbase will be able to fully refute the SEC’s allegations in the lawsuit.
In his tweet, Elliott Stein pointed out that initially, he believed Coinbase would be able to successfully refute some of the SEC’s allegations. However, he changed his mind after participating in a five-hour hearing. He stated that Coinbase’s more precise definition of “investment contract” compared to the SEC’s became the turning point that changed his perspective.
Furthermore, Elliott Stein mentioned the previous SEC case against Ripple. In July 2023, Ripple achieved partial victory in that case when the judge ruled that XRP should not be considered a security in terms of retail sales on cryptocurrency exchanges. Elliott Stein believes that the definition of securities in this case will have a domino effect on Coinbase’s lawsuit.
