Bloomberg Analyst: Coinbase Has a 70% Chance of Completely Refuting SEC Accusations

Bloomberg Analyst: Coinbase Has a 70% Chance of Completely Refuting SEC Accusations

Bloomberg Analyst: Coinbase Has a 70% Chance of Completely Refuting SEC Accusations

Bloomberg senior litigation analyst, Elliott Stein, posted on X, stating that he believes the cryptocurrency exchange Coinbase has a low possibility of losing the lawsuit against the U.S. Securities and Exchange Commission (SEC), and predicts that there is a 70% chance that the exchange can fully dismiss the SEC’s charges in the litigation.

In his tweet, Elliott Stein pointed out that initially, he believed Coinbase would be able to successfully refute some of the SEC’s allegations, but could not escape the allegations related to its lending business and overall operations. However, after participating in a five-hour hearing, his perspective changed.

Elliott Stein stated that Coinbase’s more precise definition of “investment contract” compared to the SEC became the turning point that changed his mind. On the other hand, he also mentioned the SEC’s previous case against Ripple. In July 2023, Ripple achieved partial victory in this case, with the judge ruling that XRP should not be considered a security on cryptocurrency exchanges in terms of retail sales. Elliott Stein believes that the definition of securities in this case will have a domino effect on Coinbase’s lawsuit.