Coinbase Global Inc.’s stock is rallying today, shooting up by nearly 15% to $84.56. This surge comes after Grayscale Investments won its case against the U.S. Securities and Exchange Commission (SEC).
Lately, the SEC hasn’t been doing well in its legal battles against major crypto companies. A significant win for the crypto world came when Judge Analisa Torres ruled in favor of Ripple Labs in its long-standing lawsuit with the SEC. This ruling was a game-changer for the emerging industry.
In that case, the SEC had accused Ripple of illegally selling XRP tokens and asked for a $1.3 billion fine. After a detailed look into how XRP sales fit into the Howey Test—a criterion used to determine if a transaction qualifies as an investment contract—Judge Torres concluded that while XRP sales to institutional investors are securities, those bought on secondary markets are not.
Now, all eyes are on the upcoming lawsuit between Coinbase and the SEC. This comes especially after Grayscale’s own win against the regulatory body, as they sued the SEC for not approving their Grayscale Bitcoin Trust to become a full-fledged Bitcoin ETF.
Market analysts are now weighing the strength of Coinbase’s case in their legal showdown with the SEC. Given the recent legal wins for crypto companies, optimism is high that Coinbase will also triumph in its case.
This optimism is clearly affecting investor behavior, as evidenced by increased buying activity for Coinbase’s stock on the Nasdaq Global Select Market.