Bloomberg: Judge is not expected to dismiss SEC v. Coinbase case at this stage

New York District Judge Katherine Polk Failla asked the SEC and exchanges more than four hours of questions during oral arguments last week. Last year, Coinbase was sued by the SEC for allegedly operating as an unregistered exchange, broker and clearing agency. Regulators have also raised questions about Coinbase’s staking and wallet services. Coinbase refuted the SEC's charges, asked for the case to be dismissed, and accused the regulator of taking an "enforcement regulatory" approach. Experts say Judge Failla may decide to dismiss the case. Bloomberg Intelligence senior litigation analyst Elliott Stein said in a post last week that Coinbase has a 70% chance of defeating the SEC. Stein wrote: “Our view: Coinbase has a 70% chance of defeating the SEC, if not outright on this motion, then perhaps later. Even if the case survives, it will likely reach the Supreme Court, we believe The Supreme Court will narrow Howey's scope." Stein was referring to a test based on a 1946 U.S. Supreme Court case that the SEC often cites to decide whether an asset is a security.