Coinbase Lawsuit Gains Momentum: Potential for Swift Progress Surpasses SEC v. Ripple Case

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The Coinbase lawsuit against the U.S. Securities and Exchange Commission (SEC) is predicted to progress more rapidly than the ongoing Ripple case, according to an anonymous lawyer MetaLawMan’s tweet. The case will bypass the trial court stage, starting in the appellate court, and will not involve discovery, allowing for a potential swifter resolution.

Distinguished Legal Team Spearheading the Case

Coinbase’s legal team is led by Eugene Scalia, former Secretary of Labor and son of the late Supreme Court Justice Antonin Scalia. With experience in defeating government agencies, including the SEC, the team is well-equipped to handle the lawsuit. Coinbase is seeking a Writ of Mandamus, a court order compelling the SEC to make a decision on the company’s request for rule-making.

While the lawsuit may not directly affect the SEC’s threat to sue Coinbase, it draws attention to the regulator’s contradictory positions regarding its authority to regulate digital assets, says MetaLawMan. This may influence other judges to take note of the SEC’s inconsistent stances in similar cases.

Possible Support from Industry Players and Government Officials

It is expected that major industry participants and the House Financial Services Committee or individual members may back Coinbase by submitting amicus briefs. The SEC Commissioners will have to approve any response to the company’s action. MetaLawMan says there is a small chance that the SEC will agree to engage in rule-making if just one Commissioner withdraws their support for SEC Chair Gary Gensler’s “regulation-by-enforcement” strategy.

Analysts’ Positive Outlook on Coinbase Stock

Prominent New York-based investment bank H.C. Wainwright analysts have stated that Coinbase is uniquely positioned to benefit from the large and rapidly growing global crypto economy. 

As the largest publicly-traded crypto exchange in the world, the company is expected to expand its market share in the cryptocurrency sector throughout the remainder of 2023. The analysts have set a price target of $75 per share for Coinbase stock (COIN), a nearly 40% increase from its current trading price of $53.89.