U.S. court ruling could limit SEC’s authority over crypto industry

Fox reporter Eleanor Terrett reported that on Wednesday afternoon, Judge Katherine Polk Failla of the Southern District of New York listened to arguments about the case during a five-hour hearing. The case may decide the future regulation of the $1.7 trillion cryptocurrency industry. Coinbase's lawyers argued that the court should dismiss the SEC's lawsuit, which accuses the largest US cryptocurrency exchange of trading similar unregistered digital assets as an "unregistered broker-dealer," violating securities laws. Legal experts say that Failla may need two to six weeks to make a decision. If the case progresses, the outcome may become an important precedent for US cryptocurrency regulation. If the court sides with Coinbase, it may seriously hinder SEC Chairman Gary Gensler's attempts to regulate cryptocurrency business through various enforcement actions. Since becoming chairman, Gensler has initiated more than 50 cryptocurrency enforcement actions for various violations. A victory for the SEC against Coinbase would allow Gensler to continue pursuing this agenda.