TL; DR
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The SEC alleges that by offering crypto tokens such as Solana, Cardano and Polygon, Coinbase is selling unregistered securities.
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But during yesterday’s court hearing, Judge Failla praised the DeFi community’s clear explanations of staking and wallet usage, while chiding the SEC for essentially trying to shift the goalposts and redefine wallet usage. What is a security.
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The hearing was requested by Coinbase, in an attempt to dismiss the entire case – which, if it happened, would be a milestone for the future of crypto in the US.
Full story
You know that thing you did to get your older siblings in trouble?
You started crying for no reason other than to get your mother’s attention, and when she came into the room, you made something up…
(“He pushed me” or “she grabbed my toy”).
But every now and then, when mother asked the question, “What happened?” – you would freeze under pressure, not making a clear accusation, and suddenly you was the one who got scolded.
This is so.
Except it takes place in a courtroom, between the SEC and Coinbase (and the role of “mother” is played by Judge Katherine Polk Failla).
ICYMI: The SEC alleges that by offering crypto tokens such as Solana, Cardano and Polygon, Coinbase is selling unregistered securities.
(Also known as: illegally selling shares in a company to the general public).
But at yesterday’s hearing, Judge Failla wasn’t having it.
J-Fai praised the DeFi community’s clear explanations on staking and wallet usage, while slamming the SEC for essentially trying to shift the goalposts and redefine the game. What is a security.
(Noting that former SEC Director Bill Hinman had already publicly stated that this in itself is a sign is not a security).
So…
“The SEC got scolded and now we’re smug about it.”
Is that the headline?
Well, a little – but there’s more to it than just that!
The hearing was requested by Coinbase, in an attempt to dismiss the entire case – which, if it happened, would be a milestone for the future of crypto in the US.
(Unfortunately, at the time of writing, no ruling has been made on the request).
But if you read this in the future and want to know the outcome:
Check the prices of Solana, Cardano and Polygon. If they skyrocket, it means the case has been dismissed.
Unfortunately, our assessment is that this case will still be heard/dragged.