Coinbase Tells Judge That Buying Crypto Is Like Collecting 'Beanie Babies,' SEC Says It's An Investment
Portfolio Pulse from Benzinga Neuro
In a court hearing, Coinbase's lawyer compared buying cryptocurrencies to collecting Beanie Babies, arguing that crypto tokens don't grant buyers rights like traditional securities. The SEC contends that crypto tokens are investments based on a 1946 Supreme Court decision. The outcome of the case could impact the collectibles market and the crypto industry. Coinbase is defending its position that the tokens it trades are not securities, amidst a lawsuit by the SEC accusing the platform of selling unregistered securities and operating without proper registration.
January 19, 2024 | 4:38 am
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Coinbase is currently involved in a lawsuit with the SEC, which could have significant implications for its operations and the broader crypto market. The company's defense compares crypto tokens to collectibles rather than securities.
The ongoing lawsuit and the arguments presented by Coinbase could lead to increased regulatory scrutiny and potential legal challenges. This uncertainty may negatively impact investor sentiment and the stock price of Coinbase in the short term.
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