Topic: SEC vs Coinbase (Read 728 times)

Yes, it is clear that in the US everyone loves to sue, especially when there are big losses. But I have already written several times that Coinbase is already closely connected with the government, large banks and large businesses, and it will be very difficult to sue them for money.

There was an old case from 2015 or 2016 against Ripple where the complainants were people who were bad investors and were holding losses on their XRP investment. I speculate if you look at these people's wallets, you will witness how they have made wrong trading decision that caused them some losses hehehehe. They blame Coinbase for offering these tokens in the exchange hehe.

In any case, news update which might be good for the cryptospace. Interpretation of the law can be taken from uncle Gary and this will be given back to the judges.



Majority Whip Tom Emmer (R-MN) took to social media platform X on Monday to address the Supreme Court’s decision to strike down Chevron deference and its impact on U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler’s regulatory authority. The ruling, issued on Friday, represents a significant change in the balance of regulatory authority and judicial oversight.

The congressman opined:

The Supreme Court’s decision to overturn Chevron deference kneecaps the regulatory abuses of Gary Gensler and every other unchecked, unelected bureaucrat who legislates-by-rulemaking.

Chevron deference, established by the landmark case Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., mandated that courts defer to a federal agency’s interpretation of ambiguous statutory provisions within its jurisdiction. By overturning this precedent, the Supreme Court reasserts the judiciary’s role in interpreting laws and limits the expansive interpretative powers previously granted to federal agencies.

Source https://news.bitcoin.com/supreme-courts-chevron-decision-curtails-sec-chair-genslers-regulatory-abuses-says-congressman/

https://www.theblock.co/post/292552/coinbase-faces-copycat-class-action-suit-asserting-tokens-are-securities-in-echo-of-pending-case
Coinbase faces copycat class action suit asserting tokens are securities in echo of pending case

"A class-action lawsuit against Coinbase was recently filed by a serial crypto litigator on behalf of its customers, alleging the exchange sells unregistered securities and operates as an unlicensed broker/dealer.
The lawsuit, which the company calls “legally baseless,” is similar in language to another class-action suit that was initially dismissed, but recently partially revived under appeal. "

Coinbase cleared in lawsuit over crypto transactions
Coinbase crypto exchange has achieved a significant victory in an ongoing lawsuit. The United States Court of Appeals for the Second Circuit ruled in favor of Coinbase, confirming that secondary sales of cryptocurrencies on its platform do not violate the Securities Exchange Act.

The court’s decision affects a nationwide group of people who traded tokens on Coinbase from Oct. 8, 2019, to March 11, 2022. At the heart of the dispute was whether cryptocurrencies traded on Coinbase met the criteria for securities.

The plaintiffs lodged federal claims under Sections 5, 12(a)(1) and 15 of the Securities Act 1933, alongside Sections 5, 15(a)(1), 20(a) and 29(b) of the Securities Exchange Act of 1934. They also presented state law claims related to securities legislation in California, Florida and New Jersey, representing a nationwide class of individuals.

Unfortunately, there is a big paradox here, because Joe Biden, after taking many medications, sometimes cannot control himself. And then the question is, why talk about anything with this person, who, on the one hand, is controlled, and on the other hand, sometimes does not control himself?

Joe Biden is an old man being controlled by the real rulers of America. I reckon much of the politicians are not 100% in control of what they do in government. They already have made deals and negotitations with their backers before they have been voted into office. Do not listen to their speeches and their promises.

On this only being a conspiracy theory, this is very much certainly more the reality than the conspiracy theory that the moon landings were fake.

bbc.reporter,a conspiracy theory must remain a conspiracy theory, or conspiracy theorists will have no jobs

Sometimes it looks funny and absurd when the rulers cannot agree among themselves and a big circus begins.
Look at the behavior of the current US President, he confuses the names of people, countries, forgets what laws he recently signed, talks and greets fictitious people on camera, falls asleep at events, and yet he will run for a new term. How does it work?

@zasad@. On the rulers who are using their political connections to put their people into certain government positions is not a conspiracy theory. This is reality.

On uncle Gary's retirement on 2026 as SEC chairman, this is also not a conspiracy theory. His term will end on 2026. However, on Larry Fink on suggesting his candidate for uncle Gary's replacement, this is speculation. His candidate may or may not be chosen but we can be quite certain there will be rulers who will suggest their candidates hehehehe.

bbc.reporter,now you're making conspiracy theories, too
If you are interested, check out my short post in Russian about the founders of Ethereum. In all the strong projects you will find the founders' connections with Goldman Sach, Blackrock and other companies. Blackrock owns all the famous companies in the world through its many funds.
https://bitcointalksearch.org/topic/m.62899297

@zasad@. Agreed that the rulers appoint their people in certain positions, however, it is also reality that the rulers also do not agree on certain things. What if the rulers that had the political connections to appoint uncle Gary are a bankers from Wall Street who want to protect their corporate interests? However, there is another ruler who was a bitcoin hater but has presently become the new mayor of bitcoin and who will later become the new mayor of Ethereum, who is forcing uncle Gary to sign the spot ETF approval causing bloody tears from his eyes hehehe?

I reckon after uncle Gary retires on 2026, his replacement will be someone suggested by Larry Fink. He will approve anything in the cryptospace with a smile hehehehehe. I predict that similar to the strangeness of the new all time high that occurred before the halving, the cryptospace market will not anymore have a 4 year cycle. It will be 6 years or longer.

bbc.reporter,and you think that the country's leadership appoints random people to such positions?

The richest and most successful investors in the U.S. are senators who successfully sell stocks before they fall or buy before they rise. But this is a closed club, which you can get into when a person is 70 years old or older.

It's a big circus, even if Gary Gensler is fired, there will be another clown to take his place and make the right decisions with tears in his eyes.

@zasad@. Agreed in the argument of working for the big manipulators like the new mayor of bitcoin Larry Fink, however, this does not imply that likes working for them. He is being forced to approve certain things similar to the spot ETF for bitcoin. I reckon that it will be very much similar for the approval of the spot ETF for Ethereum hehehe. After causing months of delays he will be forced to sign the approval with tears in his eyes. We can be quite certain of this.

bbc.reporter, you don't think this "tears in my eyes" news is just another circus act. I think that Gary Gensler is one of the participants of this market, who works in the interests of big manipulators.
Of course Gary Gensler has a little leeway, but when the big players need to accept Etherium spot ETF, Uncle Gary will do it again with tears in his eyes

@zasad@. Uncle Gary cannot do anything to ban the whole cryptospace within the American jurisdiction. He approved Bitcoin's spot ETF with painful tears in his eyes. The second signal that he is not in control is his approval on Ethereum's spot ETF with again painful tears coming out of his eyes hehehehee. Uncle Gary might delay the approval, however, he will approve this.

It will be 100% not 25%.



According to Bloomberg senior ETF analyst Eric Balchunas, there is only a 25% chance that the SEC approves a spot ethereum ETF. He points to the lack of SEC engagement on the topic and the absence of any positive signs or chatter on the subject, which is a departure from the lead-up to bitcoin’s approval. Balchunas believes this lack of engagement is ‘tactical’ rather than ‘procrastination’.

Source https://www.nasdaq.com/articles/slim-chances-of-ethereum-etf-approval

bbc.reporter, I agree that for Coinbase any agreement will be beneficial because they will get official permission to "haircut" hamsters in one of the richest countries in the world. A lot of crypto companies have either closed down or fled the US because it is very difficult to work with such laws.
But Gary Gensler still has a lot of work to do..

@zasad@. It will always end with a favorable agreement, however, I predict that it will be a more favorable agreement for Coinbase hehehe. A very much similar occurrence when uncle Gary was in tears when he was forced on signing for the approval of the spot ETF for bitcoin.

Blackrock was the biggest ETF pusher before the approval and on Coinbase, Blackrock is one of the shareholders of this exchange. Uncle Gary will be the loser again because of the new mayor of bitcoin.


Larry Fink, new mayor of bitcoin

bbc.reporter, Why are you making fun of Gary Gensler like that?
If we look at practice adequately, then it is the SEC that brings a lot of money to the US budget thanks to huge fines. That's why SEC is the Boss

Perhaps Coinbase will enter into a favorable agreement and pay a fine, which will suit all parties. But this exchange is already seriously integrated into Business in the USA.

News update.

According to this mainstream news media outlet, the SEC scored a big win. This is headshaking because if the SEC is going to lose in court, we can be quite certain that it will set another precedent and they will never do this regulation through enforcement again. This is not a victory for the SEC, this is certainly more pressure.



The Securities and Exchange Commission scored a major win in its lawsuit against Coinbase
 on Wednesday, as a judge ruled that its claim that the cryptocurrency exchange engaged in unregistered sales of securities could be heard by a jury at trial.

Coinbase’s shares fell around 2.5% on news of the ruling in Manhattan federal court rejecting its bid to dismiss the SEC’s complaint.

Source https://www.cnbc.com/2024/03/27/sec-scores-big-win-in-lawsuit-against-crypto-exchange-coinbase.html

Coinbase Accuses U.S. SEC of Breaking the Law in Rejecting Crypto Rulemaking
U.S. crypto exchange Coinbase has filed an action against the Securities and Exchange Commission, accusing the agency of behaving arbitrarily and capriciously in its refusal to tailor rules to clarify oversight of the industry.
This case is a response to the SEC's denial of the company's formal petition for rulemaking, again putting an important question for the future of crypto regulation before the courts.

https://www.courtlistener.com/docket/67478179/104/securities-and-exchange-commission-v-coinbase-inc/
"We write to provide further information not included in Plaintiff Securities and Exchange
Commission’s (“SEC”) Notice of Supplemental Authority, ECF No. 103, relevant to the default
judgment entered by the U.S. District Court for the Western District of Washington on the SEC’s
unopposed motion in SEC v. Wahi.
In July 2022, the SEC filed suit against Ishan and Nikhil Wahi, a 32-year old former
Coinbase employee and his brother, and Ishan’s college friend, Sameer Ramani. See SEC v.
Wahi, No. 2:22-cv-01009-TL, ECF No. 1 (W.D. Wash. July 21, 2022) (Wahi). The complaint
alleged securities fraud based on defendants’ theft of Coinbase’s confidential information and
front-running of purchases of nine digital assets, none of which are at issue in the SEC’s
complaint in this matter. The SEC did not include as parties any issuers, exchanges, or other
crypto industry participants in that action. Id.
On February 6, 2023, defendants Ishan and Nikhil Wahi moved to dismiss the complaint,
including on the basis that the tokens were “not ‘investment contracts’” and that the SEC thus
had exceeded its statutory authority. Wahi, ECF No. 33. Coinbase and several other industry
participants filed briefs in support of the Wahi brothers’ motion. See Wahi, ECF Nos. 92, 94, 97,
101, 104. That motion was never decided because just weeks later, on June 1, 2023, the SEC
terminated the action against the Wahi brothers in a zero-dollar, no-admit-no-deny settlement."

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Again, conflicts appear on the topic of what securities are.