Coinbase and SEC Dig in With U.S. Judge on Whether Securities Law Applies to Listings

The U.S. Securities and Exchange Commission (SEC) case against Coinbase delves into a ton of complexity, but before anything else, a judge has to decide whether transactions in about a dozen tokens traded on the U.S. exchange were securities.

Both sides – the SEC and Coinbase – agreed in a Wednesday court hearing that the tokens themselves aren’t securities. The SEC lawyers argued that each trade amounted to an investor buying into a token ecosystem in which the purchaser is hoping to share in its gains, and as long as a single one of those transactions could be considered an investment contract, Coinbase has broken securities law. But the company said these are secondary-market trades in which no contract is in place, so they can’t be securities.

Source: Coinbase and SEC Dig in With U.S. Judge on Whether Securities Law Applies to Listings