Coinbase Global’s lawyers asked a U.S. judge to dismiss the SEC’s lawsuit on Friday, saying: The SEC would have misread Howey’s point of view, and the recent encryption case does not support the SEC’s efforts to use the “plan” as a legal text escape.
For example, one could invest in a baseball or other trading card company through a vehicle that imposes obligations on the company, which would be a security.
Or, people could buy baseball cards on the open market in the hope that they appreciate in value so that people buy a commodity.
This remains the case even as the company says it plans to create a best-in-class card trading platform to increase the value of the cards it sells. These performances don’t turn baseball cards into securities. Baseball Cards is not a stake in the baseball card business.