Coinbase, whose judicial process continues with the US Securities and Exchange Commission (SEC), started a counterattack.
The US-based cryptocurrency exchange submitted a motion to dismiss the lawsuit. It is a matter of curiosity what this move of Coinbase will bring.
Coinbase counterattacked in legal process with SEC
Coinbase has submitted a motion to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC). Coinbase’s lawyers allege that the SEC violated due process, abused its discretion, and stepped up certain regulatory authority by abandoning its previous comments.
Coinbase referenced the SEC-Ripple lawsuit, in which the XRP token was largely not qualified as a security by the SEC. This reference is presented as an argument criticizing the SEC’s regulations regarding other crypto assets.
Coinbase’s allegations include that the 12 tokens mentioned in the SEC lawsuit were considered “investment contracts” under the Howey test, and that the exchange was operating as an unregistered brokerage firm. The crypto firm is attempting to dismiss the lawsuit, arguing that the SEC’s enforcement action was “punitive” and represented an overstepping of its mandate by Congress.
Today, @coinbase filed our brief asking the Court to dismiss the SEC’s case against us. Our core argument is simple — we do not offer "investment contracts" as that term has been construed by decades of Supreme Court and other binding precedent. 1/3 https://t.co/r2EkDgkEuc
— paulgrewal.eth (@iampaulgrewal) August 4, 2023
The SEC filed the lawsuit against Coinbase over allegations that the exchange’s activities had the potential to violate securities laws. Coinbase has consistently denied these allegations and is defending itself during the litigation process.
In addition, the SEC’s sanctions cases against other crypto firms and individuals are also ongoing. Additionally, U.S. lawmakers are addressing entitlement by law through committees that can restructure regulations on digital assets.
