“Like all securities, an economic arrangement can qualify as an investment contract only if it involves an ongoing business enterprise whose management owes enforceable obligations to investors. Absent such obligations, the contract is just an asset sale,” Coinbase argued. “Because no such obligations are carried in the transactions over Coinbase’s secondary market exchange, and because the value that Coinbase purchasers receive through these transactions inheres in the things bought and traded rather than in the businesses that generated them, the transactions are not securities transactions.”
Related posts
-
Ripple’s Big Court Win Nonetheless Muddied Waters on Whether XRP Is a Security Deserving Tougher Regulation
In a near-vacuum of legal and regulatory clarity for crypto, district judges’ opinions on whether a... -
SEC Sues ConsenSys Over MetaMask Staking, Broker Allegations
The U.S. Securities and Exchange Commission sued Ethereum software provider ConsenSys over its MetaMask service Friday,... -
Supreme Court Rules to Overturn the Chevron Doctrine, Curbing Federal Agencies’ Power
The U.S. Supreme Court ruled 6-3 on Friday to drastically curb the authority of federal regulators,...