A lawyer said that it is likely that the U.S. Securities and Exchange Commission (SEC) will not win if they go to court against Coinbase for not following securities laws. He also added that this problem was caused by Gary Gensler himself.
Coinbase Could Have an Upper Hand in Court – Here’s Why!
Lawyer James Murphy released a bunch of tweets on Wednesday showing why he thinks the U.S. Securities and Exchange Commission (SEC) will not win if Coinbase goes to court. Murphy started his own law firm named “Murphy & McGonigle” in 2010 and specializes in working with clients from the securities and banking industries. In 2017, his law firm shifted its focus to helping companies who use something called blockchain technology.
The lawyer said that if the SEC (Securities and Exchange Commission) decides to sue Coinbase, the lawyer believes they will lose. He argued that there is a problem with their case and the person responsible for it is Gary Gensler.
On May 6, 2021, SEC Chairman Gensler told Congress that the SEC cannot control cryptocurrency exchanges. This happened after Gensler was approved by the US Senate on April 14, 2021 and became a part of the SEC on April 17, 2021.
If Coinbase has a legal issue with the SEC and needs to go to court, their lawyers will focus on all the conversations that happened within the SEC before its leader, Gensler, gave his speech on May 6. All of Gensler’s statements in this speech had already been approved by other members of the SEC so it could be said in public.
Murphy said that lots of emails, notes from meetings, memos, text messages, chats, and what people say in court show that the SEC agreed they weren’t allowed to manage cryptocurrency exchanges.
If Coinbase is sued by the SEC, the SEC’s lawyers will find it hard to explain their Chairman’s statements to Congress and all the documents they considered. This could be really embarrassing for the SEC.
The lawyer said that Coinbase will use Gary Gensler’s changed opinion to their advantage. He had previously testified to Congress that the SEC did not have the right to regulate cryptocurrencies but he later changed his mind, without any permission from Congress. Therefore, Gary Gensler might be key witness in trial for Coinbase.
The SEC (Securities and Exchange Commission) might take Coinbase to court if they suspect them of doing something against the law. What do you think will happen if this happens? Let us know in the comments below!