August 15th, 2023
Alright, hold onto your law books, because things are getting wild! The SEC and Coinbase are having a real throwdown, and guess who just crashed the party? A bunch of law professors who are ready to roast the SEC’s idea of an “investment contract.”
SEC Charges Remain Vague
So, picture this: the SEC is all like, “Coinbase, you’re playing naughty as an unregistered broker!” And they’re pointing fingers at 13 cryptos, saying they’re like “unregistered securities.” But here’s the real star of the show – the “Howey Test.” It’s the ultimate way to decide if something’s a moneymaking adventure.
Howey Test: Crypto?
Now, this Howey Test has been playing referee in the crypto arena. It even made a cameo in the Ripple vs. SEC drama. Ripple said, “Our XRP sales aren’t like that, dude!” And the judge nodded and said, “You got a point!” But when the SEC went after Terraform Labs and Do Kwon, things got a little dicey.
The SEC’s saying, “Hey, even without a fancy contract, if it’s a sneaky scheme, it’s still an ‘investment contract.'” But these smarty-pants professors aren’t buying it. They’re dropping some history knowledge from 1934, like a total flex.
Apparently, back in the day, everyone agreed you needed a deal between buyers and sellers for an “investment contract” to be a thing. They’re pointing fingers at some “blue-sky laws” from Minnesota, and it’s like a mic drop moment.
These brainiacs are throwing shade at the Supreme Court, saying they’ve been singing the same tune as the state courts. They’re basically yelling, “Every high-level investment contract in the history books had a legit agreement between buyers and sellers!” Yeah, the Howey Test mentioned a “scheme,” but that’s not changing the game – it’s still all about those contracts.
Will Coinbase Win?
So, if the Supreme Court decides to ride shotgun with the SEC and back their play against Coinbase, it’s like rewriting the whole script of crypto law. These professors are like the ultimate party crashers, shouting, “Stick with the old-school meaning of ‘investment contract,’ people!”
Get your popcorn ready, folks, because the legal showdown just turned into a comedy roast, and these professors are throwing some serious shade at the authority! 🎓🔥