For anyone who wants to revisit last week's exciting Bitcoin ETF horse race, I have unfortunate news: Tomorrow is the federal holiday Martin Luther King Jr. Day, so the stock market will be closed. However, the blockchain will continue to be validated, and several important events are scheduled for later in the week, including Coinbase's recent showdown with the SEC, the opening of more than $150 million worth of tokens, and the World Economic Forum holding its meeting. Annual in Davos. Switzerland.
Here's what you need to know.
Coinbase v. SEC: 4 findings
Coinbase will face the SEC in federal court in Manhattan on Wednesday, January 17, over Coinbase's request for judgment on the pleadings in the SEC's case against the company.
Quick recap: The SEC accuses Coinbase of violating national securities laws by selling 13 cryptocurrency tokens, which the agency says constitute unregistered securities, along with failing to register its staking software as a service. Coinbase argues that the agency allowed the company to go public, effectively signing away its core business, and going beyond its scope due to a lack of congressional authorization.
There are four outcomes for the upcoming hearing in federal court on Wednesday, expert cryptocurrency lawyer James A. Murphy, also known as MetaLawMan, On X. An outright win for the SEC, with the judge denying Coinbase's request, would be a “low bar,” according to Murphy, as the SEC only has to show that its claim is “reasonable.”
However, Coinbase has only one chance for an outright victory: The judge grants Coinbase's request with prejudice, meaning the SEC must appeal to a higher court to continue the case. Coinbase may also win a limited victory, as if the judge had approved the proposal with respect to tokens but rejected it with respect to the staking service. The unexpected end result, according to Murphy, is for a judge to approve Coinbase's proposal but allow the SEC to correct some of the deficiencies.
If Coinbase's motion is denied, either in whole or in part, the case will proceed to discovery for about a year, Murphy estimates, before a motion for summary judgment is filed. Murphy added that he does not expect a ruling in the case at this time.
Preview unlock token
Here are the biggest token unlocks to be released next week, according to TokenUnlocks data:
ApeCoin, the currency of the Yuga Labs ecosystem, will unlock 15.6 million tokens worth about $23 million on January 16 at 7pm UTC. Axie Infinity, which is tied to the play-to-win game, will unlock 3.43 million tokens worth about $28 million on January 18 at 8:10 a.m. Injective, the native token of the first layer of the blockchain, will unlock 3.67 million tokens worth about $140 million on January 20 at 7 p.m., and SPACE ID, which is linked to the digital identity platform, will unlock 53 million tokens worth about $16 million on January 21 at 7 p.m. evening.
Cryptocurrencies at the World Economic Forum
The World Economic Forum, known for its annual meetings in Davos, Switzerland, is scheduled to meet there again this week. According to a report in Financial News, several cryptocurrency companies, including Ripple, Circle, Coinbase, Stellar, and Hedera, are expected to emerge, as cryptocurrency companies try to defend their legitimacy on the global financial scene.
Disclaimer: The Block is an independent media outlet that provides news, research and data. As of November 2023, Foresight Ventures is the majority investor in The Block. Foresight Ventures is investing in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is a core program of Foresight Ventures. The Block continues to work independently to provide objective, influential and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
