James Murphy, one of the well-known crypto lawyers of the United States, spoke about the pressure the Securities and Exchange Commission (SEC) has put on the crypto exchange Coinbase. Murphy claimed that he would likely lose the court if the SEC sued Coinbase.
Making a statement on his Twitter account, the crypto lawyer said the following, referring to the Wells statement published by the SEC:
"I believe the SEC will lose if it takes legal action after threatening Coinbase. There are significant inconsistencies in the jurisdiction of the Securities and Exchange Commission."
James Murphy conflates Gensler's earlier statement that the Securities and Exchange Commission has no enforcement authority on crypto exchanges. SEC Chairman Gary Gensler, speaking to the American Congress in May 2021, emphasized that the institution has no regulatory authority on crypto trading platforms.
The crypto expert lawyer stated that if a lawsuit is filed, Coinbase officials will make an objection in this direction and they will be right at the end of the day. The SEC has gripped the cryptocurrency exchange in recent weeks for "not complying with securities laws".