Coinbase Compares Cryptocurrency to Beanie Babies in SEC Lawsuit
Jan 18, 2024
Coinbase Global Inc. compared buying cryptocurrency on their exchange to collecting Beanie Babies rather than investing in traditional securities during a New York federal court hearing. The cryptocurrency exchange made this analogy while arguing for the dismissal of a Securities and Exchange Commission (SEC) lawsuit accusing it of selling unregistered securities. Coinbase's argument centered on the idea that tokens traded on their platform are not securities subject to SEC jurisdiction because buyers don't acquire rights similar to those associated with stocks or bonds. The judge has not yet ruled on the matter, and the case raises questions about whether digital tokens should be classified as securities, a topic that has divided courts.