Legal expert MetaLawMan, who is also a supporter of Ripple in the ongoing case against the SEC, has noted important shifts in the SEC’s approach to the ongoing Coinbase case. The change in strategy comes as the cryptocurrency exchange moves forward with its interlocutory appeal.
Two weeks ago, MetaLawMan noted that Coinbase had filed a motion to the Second Circuit Court requesting permission to proceed with its interlocutory appeal. At that time, he pointed out that the SEC had a 10-day window to oppose the motion, marking what could have been the agency’s first legal brief in the post-Gary Gensler era.
The situation was particularly intriguing because, under Gensler’s leadership, the SEC had previously opposed Coinbase’s motion to certify the appeal at the District Court level—a battle the SEC ultimately lost.
In a recent update, MetaLawMan revealed that the SEC has taken a notably different approach. The agency has chosen not to file any opposition to Coinbase’s motion for an interlocutory appeal at the Second Circuit. This marks a clear departure from their previous stance under Gensler’s leadership.
Looking Ahead: Two Potential Outcomes
According to MetaLawMan’s analysis, the case’s future now appears to be heading toward one of two scenarios. If the Second Circuit accepts the case for interlocutory appeal, the SEC would typically have several months before needing to file a brief and establish its legal position on a crucial question: whether cryptocurrency assets traded on secondary exchanges qualify as investment contracts.
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However, MetaLawMan speculates that the case might not reach that stage at all. In his assessment, the most likely outcomes are either a settlement between the parties or the SEC dismissing the case entirely before any briefing on the appeal’s merits takes place.
This development represents a potentially significant shift in the regulatory landscape for cryptocurrency trading and could have far-reaching implications for the entire digital asset industry.
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