Zvi Gabbay : “The SEC’s Approach Is Wrong, and I Think That They’re Already Paying For It”

“[The SEC] settles the vast majority of their cases because defendants – this could be companies or individuals – either can’t afford or don’t want to pay the legal fees for the battle. And, more importantly, in many cases, they don’t know if they’ll be able to stay alive, in that you’re poison once you have these types of proceedings [against you] … but Coinbase, Kraken and Binance are fighting for their lives. There is no alternative, and because there is no alternative, they’re going to fight.”

Furthermore, the big crypto platforms may have an advantage in terms of legal personnel and tactics.

“Their legal teams are comprised of former heads of the SEC enforcement division. And, with Ripple, it’s a former chairman of the SEC. It’s super senior people. In many cases, these are stronger legal teams than the SEC’s team.”

“So you’re talking super strong defense, together with the fact that [the crypto companies] have to fight, together with the fact that when [the SEC] embark on regulation by enforcement, you make mistakes and you’re forced to take positions that are legally weird, uncomfortable, and not persuasive.”

“The combination of these three factors leads me to believe that the SEC’s chances of winning are not the usual chances that they’re used to.”

Source: Zvi Gabbay : “The SEC’s Approach Is Wrong, and I Think That They’re Already Paying For It”