Coinbase received an optimistic forecast from senior litigation analyst Elliott Stein regarding its ongoing lawsuit with the Securities and Exchange Commission (SEC).

In a post on social media on Jan. 19, Stein predicted a 70% chance of Coinbase securing a full dismissal of the SEC’s allegations.

The regulator alleges Coinbase violated securities laws by offering staking rewards and operating as an unregistered broker. However, Stein explained his outlook shifted after hearing Coinbase’s legal arguments during a 5-hour court hearing.

He was persuaded by Coinbase’s more precise definition of an “investment contract” compared to the SEC’s.

Stein also pointed to the recent Ripple case where the judge ruled XRP is not a security when sold on crypto exchanges. He believes this precedent could influence the Coinbase decision around whether its operations fall under SEC regulation.

Overall, Stein sees the SEC’s claims as a poor fit with the legal test for investment contracts based on recent crypto rulings.

While Coinbase previously expected to beat some SEC allegations, this optimistic forecast from a litigation expert suggests the exchange now has a strong chance of a total dismissal in this high-profile crypto lawsuit.

The news you see on this site are collected from reliable news sites. Therefore, original sources are used as much as possible.