Former CIA employee Edward Snowden suggested that the largest American crypto exchange Coinbase has a great chance of winning a lawsuit with the US Securities and Exchange Commission (SEC).

US District Judge Katherine Failla rejected Coinbase's request to dismiss the lawsuit brought by the US regulator. The judge cited the strength of the SEC's arguments that Coinbase's trading and staking products may violate securities laws. Despite this court decision, Coinbase General Counsel Paul Grewal expressed his willingness to fight the lawsuit.

Edward Snowden supported Coinbase's position. He mentioned previous litigation involving the SEC. In October, the court ordered the SEC to reconsider Grayscale's application to launch a Bitcoin-linked spot ETF. Therefore, Snowden suggested that the outcome of the current case would also be unsuccessful for the regulator. According to him, if the SEC continues to act in bad faith, the regulator will increasingly lose in court and will not be able to effectively regulate organizations working with cryptocurrencies.

“If the SEC continues this way, it will become commonplace for them to lose in court. Therefore, the SEC will never be able to do this to crypto companies again. The SEC was once spanked so badly in court that its chairman, Gary Gensler, had to tearfully approve a Bitcoin ETF,” Snowden wrote on social media.

Previously, Snowden said that cryptocurrency ETFs contradict the decentralization of Bitcoin because they could give institutional investors disproportionate power and reduce the influence of ordinary users on the network.