SEC Lawsuit in Case That Could Shape Crypto Regulation

Outcome could impact SEC Chair Gary Gensler's enforcement actions and the industry's resistance to being classified as securities.

Federal southern district of New York Judge Katherine Polk Failla heard arguments in a case that could decide the regulatory future of the $1.7 trillion cryptocurrency industry.
Coinbase, the U.S's largest crypto exchange, is arguing against an SEC lawsuit alleging that it violated securities laws by operating as an unregistered broker dealer.
SEC Chair Gary Gensler has brought more than fifty crypto enforcement actions for various rule violations since becoming chairman.
The crypto industry believes many token offerings don’t meet the Howey Test requirements because there's no underlying contract between issuers and buyers.
Congress is keeping track of the regulatory debate, with GOP senator Cynthia Lummis from Wyoming asking Failla to dismiss the Coinbase suit.