Weekly Preview: Coinbase vs. SEC, Big Token Unlocks, and More

adminJanuary 15, 2024

For those hoping to return to last week’s exciting Bitcoin ETF horse race, we have some unfortunate news. Tomorrow is a Martin Luther King Jr. federal holiday, so the stock market is closed. However, blockchain will continue to be validated, and several important events are expected this week, including Coinbase’s recent showdown with the SEC, the unlocking of over $150 million in tokens, and the World Economic Forum’s annual meeting in Davos. It is scheduled for the second half of the year. Swiss.

Here’s what you need to know:

Coinbase vs. SEC: 4 Results

Coinbase is scheduled to face the SEC in Manhattan federal court on Wednesday, January 17, over Coinbase’s motion for judgment on a lawsuit the SEC filed against the company.

Quick recap: The SEC is accusing Coinbase of violating state securities laws by selling 13 cryptocurrency tokens that it claims are unregistered securities and failing to register its stake-as-a-service program. . Coinbase argues that the agency effectively approved its core business by listing the company and is out of bounds due to a lack of congressional authority.

There are four possible outcomes from Wednesday’s hearing in federal court. Cryptocurrency lawyer James A. Murphy (aka MetaLawMan) said: on. According to Murphy, an outright victory for the SEC, with the judge denying Coinbase’s motion, would be a “low bar” because the SEC would only have to show that its claims were “valid.”

However, there is only one chance for Coinbase to emerge victorious outright. Judge grants Coinbase’s motion with prejudice. This means the SEC will have to appeal to a higher court to continue the case. Coinbase may score a narrower victory, such as if a judge approves an application for tokens but rejects an application for staking services. The unlikely end result, according to Murphy, is if a judge approves Coinbase’s application but allows the SEC to fix certain deficiencies.

If Coinbase’s motion is denied in whole or in part, Murphy estimates the case will likely move into discovery for about a year before a motion for summary judgment is filed. Murphy added that he does not expect a ruling in the case at this time.

Token Unlock Preview

According to token unlock data, the biggest token unlocks scheduled for next week are:

Ape Coin monkey

-0.32%
a token associated with the Yuga Labs ecosystem, is scheduled to unlock 15.6 million tokens worth approximately $23 million on January 16 at 7:00 PM UTC. axi infiniti AXS

-1.16%
which involves peer-to-peer gaming, is scheduled to unlock 3.43 million tokens worth about $28 million at 8:10 a.m. on January 18. injection INJ

-4.66%
the native token of the layer 1 blockchain, is scheduled to unlock 3.67 million tokens worth approximately $140 million at 7 PM on January 20, SPACE ID

+1.08%
which is associated with a digital identity platform, plans to unlock 53 million tokens worth about $16 million at 7pm on January 21.

Cryptocurrency at the World Economic Forum

The World Economic Forum (WEF), best known for its annual meeting in Davos, Switzerland, will be held there again this week. According to a report by Financial News, cryptocurrency companies are asserting their legitimacy on the global financial stage, including Ripple, Circle, Coinbase, Stellar, and Hedera. ) and other cryptocurrency companies are expected to emerge.

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adminJanuary 15, 2024