Cryptocurrency is just another version of Beanie Babies. coinbase Lawyers told the court they oppose classifying the currency as a security. The lawyer said virtual currencies are more like collectibles than actual shares in a company.
“There's a difference between buying Beanie Babies and buying Beanie Babies,” Coinbase lawyer William Savitt said. bloomberg.
Savitt likened cryptocurrencies to collectible stuffed animals in New York federal court when arguing to dismiss a lawsuit filed by the Securities and Exchange Commission in June 2023.
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According to Bloomberg, Savitt told U.S. District Judge Catherine Polk Failla that currency is not considered a security because the person purchasing it does not have an interest in the company it belongs to, unlike when purchasing stocks or bonds. He said it was different.
Legal experts are quoted as saying Failla has said it could take two to six weeks to make a decision on the matter. fox business.
This isn't the first time Coinbase has compared cryptocurrencies to Beanie Babies.
“This is similar to selling a parcel of land whose value may fluctuate after the sale. Or a condominium in a new development. Or an American Girl doll, a Beanie Baby, or a baseball card. ,” a Coinbase lawyer said. In a motion filed in August 2023.
The motion also points to a judge's ruling that Ripple Labs' cryptocurrency XRP is not a security.
Why did the SEC file a lawsuit?
of SEC filed suit According to the SEC's statement, Coinbase was “operating a crypto-asset trading platform as an unregistered national securities exchange, broker, and clearinghouse.” The commission also accused Coinbase of “failing to register offers and sales under the Cryptoasset Staking-as-a-Service program.”
