{"id":11860,"date":"2023-05-07T08:26:46","date_gmt":"2023-05-07T08:26:46","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=11860"},"modified":"2023-05-07T08:26:48","modified_gmt":"2023-05-07T08:26:48","slug":"lawyer-expects-sec-to-lose-if-it-sues-coinbase-due-to-fatal-flaw-of-gary-genslers-own-making","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=11860","title":{"rendered":"Lawyer Expects SEC to Lose if It Sues Coinbase Due to &#8216;Fatal Flaw&#8217; of Gary Gensler&#8217;s Own Making"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>A lawyer has explained why the U.S. Securities and Exchange Commission (SEC) will likely lose if the regulator takes crypto exchange Coinbase to court over alleged securities law violations. \u201cThe problem is entirely of Gary Gensler\u2019s own making,\u201d he stressed.<\/strong><\/p>\n<h2>Lawyer Expects SEC to Lose Against Coinbase in Court<\/h2>\n<p>Lawyer James Murphy explained in a series of tweets Wednesday why he believes the U.S. Securities and Exchange Commission (SEC) will lose if it takes Coinbase to court. Murphy started law firm Murphy &amp; McGonigle in 2010 to represent clients in the securities and banking industries. The firm pivoted in 2017 toward representing emerging companies that leverage blockchain technology.<\/p>\n<p>Referencing a Wells Notice, a formal communication that typically precedes a lawsuit, that the securities regulator sent the Nasdaq-listed cryptocurrency exchange in March, the lawyer opined:<\/p>\n<p>If the SEC follows through on its threat to sue Coinbase, I believe the SEC will lose. The SEC\u2019s case has a fatal flaw. And the problem is entirely of Gary Gensler\u2019s own making.<\/p>\n<p>Murphy explained that SEC Chairman Gensler himself said in his testimony to Congress on May 6, 2021, that the SEC does not have the authority to regulate cryptocurrency exchanges. Gensler\u2019s testimony followed his confirmation by the U.S. Senate on April 14, 2021, to serve as chair of the SEC. He was sworn into office on April 17, 2021.<\/p>\n<p>If the SEC files a lawsuit against Coinbase, the crypto exchange\u2019s legal team \u201cwill surely zero in on the communications within the SEC leading up to Gensler\u2019s May 6, 2021 testimony,\u201d Murphy said, adding that \u201cAll testimony of an SEC Chairman is thoroughly vetted internally before they testify.\u201d<\/p>\n<p>Murphy stressed: \u201cSo there will be emails, meeting notes, memos, text messages, chats, and deposition testimony showing that: There was a consensus within the SEC that it lacked legal authority from Congress to regulate crypto exchanges.\u201d<\/p>\n<p>He continued:<\/p>\n<p>If they sue Coinbase, the SEC\u2019s lawyers will have the unenviable task of trying to explain away their own chairman\u2019s testimony to Congress and all the documents and discussion that preceded it internally within the SEC \u2026 It\u2019s a highly embarrassing prospect for the SEC.<\/p>\n<p>\u201cEven more damaging will be all the discovery Coinbase will conduct around Gensler\u2019s decision to pull a 180-degree reversal and suddenly claim that the SEC does have the authority to regulate crypto exchanges in the absence of any Congressional authorization,\u201d the lawyer emphasized. \u201cHis unequivocal testimony before Congress and his bizarre 180-degree reversal make Gary Gensler himself the star witness at trial \u2014 for Coinbase.\u201d<\/p>\n<p><em><strong>Do you think the SEC will lose against Coinbase if it takes the crypto exchange to court over alleged securities law violations? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/lawyer-expects-sec-to-lose-if-it-sues-coinbase-due-to-fatal-flaw-of-gary-genslers-own-making\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A lawyer has explained why the U.S. Securities and Exchange Commission (SEC) will likely lose if the regulator takes crypto exchange Coinbase to court over alleged securities law violations. \u201cThe problem is entirely of Gary Gensler\u2019s own making,\u201d he stressed. Lawyer Expects SEC to Lose Against Coinbase in Court Lawyer James Murphy explained in a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11861,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-11860","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11860"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11860\/revisions"}],"predecessor-version":[{"id":11862,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11860\/revisions\/11862"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/11861"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}