Coinbase Vs SEC First Hearing Update: Judge Delivers Surprising Remarks

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The much-anticipated summary ruling on the Ripple Vs SEC came out with Ripple emerging victorious as Judge Analisa Torres ruled that XRP is not a security. This ruling has drawn significant attention to the ongoing lawsuit between Coinbase and the SEC. In June, the SEC filed a lawsuit against Coinbase and Binance, alleging that they permitted the trading of unregistered securities and should have registered themselves with the regulatory agency. 

During the first hearing in the Coinbase vs. SEC lawsuit on Thursday, there have been significant developments as the judge’s questions provided insights into her perspective on this legal dispute. 

Favorable Outlook for Coinbase

In a recent series of tweets, Metaman, a lawyer and cryptocurrency influencer, shared updates and insights on the first hearing of the lawsuits. According to Metaman, both sides’ lawyers appeared before Judge Katherine Polka Faila, of the U.S. District Court for the Southern District of New York presiding over the case. He further stated that reports from the court proceedings of the Coinbase Vs SEC lawsuit suggest a favorable outcome for Coinbase.

The judge acknowledged Coinbase’s belief that their actions were permissible based on the S-1 issuance, stating, “It’s not crazy for Coinbase to think what they were doing was OK.” Notably, the judge inquired about the SEC’s stance on whether Ether qualifies as a security, to which the SEC lawyer responded that the Commission has not explicitly addressed it.

The discussion also touched upon the Major Questions of Doctrine. Demonstrating skepticism towards the SEC’s messaging, the judge’s remarks suggested a critical examination of the case. However, with a busy docket, a swift ruling on motions may not be expected.

Metaman Warns Against Drawing Excessive Conclusions From Judge Statements 

Metaman cautioned against drawing excessive conclusions from statements made by the judge during the initial conference, as her understanding is based on short letters by each side. Nevertheless, Metaman noted that the judge posed good questions and displayed skepticism towards certain responses from the SEC.