-Six law professors from top universities are helping Coinbase in a case against the SEC.
-The SEC would need to do more than win an interlocutory appeal in the Ripple case to prove its point about some crypto tokens being “investment contracts”.
-The Coinbase case is seen as a clearer example of SEC overreach compared to the Ripple case, which revolves around alleged systematic sales for fundraising purposes.
Ripple vs. SEC: Winning Interlocutory Appeal Won’t Guarantee SEC a Triumph
Coinbase Case Against The SEC
According to one legal analyst, Meta Lawman, six law professors from top universities are helping Coinbase in a case against the SEC. They disagree with how the SEC sees certain crypto tokens as “investment contracts” and argue that investors should keep having an interest in the company’s money or assets to count as an “investment contract.” This goes against the SEC’s idea that some crypto tokens on other markets are investment contracts.
Coinbase Case Seen As Clearer Example of Overreach
Market analyst Dave Weisberger commented that the Coinbase case is seen as a MUCH clearer example of SEC overreach than Ripple, as Coinbase had no financial interest in sales of the tokens alleged to be securities. He added that for the SEC to succeed in the Ripple case, it wouldn’t be enough for them to just win an interim appeal and that they would need to convince courts that token transactions can still be seen as investment contracts even when not linked to fundraising for a shared project.
Ripple Case Revolves Around Systematic Sales For Fundraising Purposes
The Ripple case likely revolves around Ripple’s systematic sales for fundraising purposes and whether or not this constitutes investment contracts under US law. Market analyst Dave Weisberger suggests that it would take more than winning an interlocutory appeal for theSEC to prove their point about token transactions being investment contracts when not linked directly with fundraising efforts .
Law Professors Disagree With How The SEC Sees Crypto Tokens As Investment Contracts
Six law professors from top universities are helping Coinbase disagree with howSEC sees certain crypto tokens as “investment contracts” and have argued that investors should keep having an interest in the company’s money or assets before such tokens can be seen as “investment contract.“