Edward Snowden, a prominent figure in the realm of digital privacy advocacy, has recently weighed in on the legal skirmish between Coinbase and the US Securities and Exchange Commission (SEC).
In a significant development, a United States district judge has ruled in favor of allowing the SEC to proceed with its lawsuit against Coinbase. This decision emerged as Judge Katherine Failla denied Coinbase’s motion to dismiss the case, citing compelling evidence presented by the SEC indicating potential violations of securities laws through Coinbase’s trading and staking products.
Edward Snowden: SEC Will Lose To Coinbase
Despite this setback for Coinbase, the exchange had anticipated such a ruling. Chief legal officer Paul Grewal conveyed confidence in the company’s legal position, signaling its intent to vigorously contest the lawsuit.
Snowden, a vocal supporter of Coinbase within the crypto community, has echoed sentiments favoring the exchange’s success. While acknowledging the court’s decision to advance the SEC’s case, Snowden drew parallels to previous legal confrontations involving the SEC, suggesting a potential outcome akin to past cases.
BTCUSD trading at $70,267 on the weekend chart: TradingView.com
He warned that if the SEC continues to act in what he perceives as “bad faith,” it could face significant losses in court. Such outcomes might hamper the SEC’s ability to enforce regulations on crypto-related entities, including its ongoing legal actions against platforms like Binance and Kraken.
This doesn’t bother me. If the SEC keeps acting in bad faith like this, they’re going to lose so hard in court that they’ll never be able to do this to anyone ever again. Remember when the SEC got spanked so badly that Gensler had to approve BTC ETFs with tears in his eyes? yeah https://t.co/XWOwmoaICN
— Edward Snowden (@Snowden) March 27, 2024
In a separate aspect of the legal battle, Coinbase has secured a victory regarding its self-custody wallet service. Judge Failla dismissed the SEC’s claim that Coinbase acted as an unregistered broker by providing customers access to its Coinbase Wallet application.
Coinbase Vs. SEC: Legal Clash Unveils Crypto Regulatory Maze
This dismissal effectively prevents the SEC from pursuing legal action against Coinbase concerning its wallet offering. Both parties now have until April 19 to submit a proposed case management plan, marking the continuation of legal proceedings in the case.
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Edward Snowden, renowned for his role in leaking classified information about US government surveillance programs in 2013, remains a pivotal figure in advocating for digital privacy and civil liberties. Despite facing legal repercussions in the US, Snowden continues to wield influence in global discussions surrounding privacy rights, surveillance, and government transparency.
The ongoing legal battle between Coinbase and the SEC underscores the complexities and regulatory uncertainties surrounding the cryptocurrency landscape. As the case progresses, it is poised to shape the future regulatory framework governing digital assets in the United States.
Featured image from Pexels, chart from TradingView
