• Coinbase is suing the U.S. Securities and Exchange Commission (SEC) for rule-making, with a legal team led by Eugene Scalia.
• The case is predicted to progress more rapidly than the ongoing Ripple case, bypassing trial court stage and not involving discovery.
• If successful, the lawsuit may influence other judges to take note of the SEC’s inconsistent stances in similar cases and draw support from industry players and government officials.
Coinbase Lawsuit Gains Momentum
Coinbase has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), seeking a Writ of Mandamus for rule-making on digital assets. The company’s legal team, led by former Secretary of Labor and son of Supreme Court Justice Antonin Scalia – Eugene Scalia, is well-equipped to handle this lawsuit which could potentially progress faster than the ongoing Ripple case due to starting in appellate court without discovery involved.
Potential Impact on SEC’s Authority
The Coinbase lawsuit may have implications on how future cases regarding cryptocurrency regulations are handled by authorities such as the SEC. It draws attention to their contradictory positions regarding its authority to regulate digital assets, which can influence other judges when making decisions on similar cases in future proceedings. Furthermore, if successful it may draw support from industry players and government officials through amicus briefs submitted in favor of Coinbase’s position.
Positive Outlook on Stock Performance
Prominent New York-based investment bank H.C Wainwright analysts have expressed positive sentiments towards Coinbase stock performance following this news, expecting it to further benefit from more clarity surrounding crypto regulatory environment as a result of this action taken by Coinbase against the SEC .
Speculation over Possible Outcome
It remains unclear how successful this action taken by Coinbase will be but many believe that if just one Commissioner withdraws their support for SEC Chair Gary Gensler’s “regulation-by-enforcement” strategy then there is a small chance that the SEC will agree to engage in rule-making.
Overall, Coinbase’s legal team is taking decisive action against the US regulator which could lead to wider implications within cryptocurrency regulation globally should they be successful with their suit against the SEC .