30. Juni 2023

Coinbase Moves to Dismiss SEC Lawsuit, Calls It Neither Prudent nor Lawful

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• The SEC accused Coinbase of running an unregistered securities exchange, broker and clearing agency.
• Coinbase responded to the SEC’s complaint and revealed its intent to file for dismissal.
• Coinbase argued that the regulator had approved its initial public offering in 2021 without ever mentioning that it had to register its business.

SEC’s Lawsuit Against Coinbase

The United States Securities and Exchange Commission (SEC) set the stage for a legal battle with crypto exchange Coinbase earlier this month, accusing it of running an unregistered securities exchange, broker, and clearing agency. Furthermore, the agency asserted that a cross-section of Coinbase’s services violated securities laws.

Coinbase Responds to SEC’s Complaint

In response to the SEC’s complaint on Wednesday, June 28th, Coinbase revealed its intent to seek dismissal of the case by questioning the authority and classification of digital assets by the regulator. The crypto exchange argued that the regulator had approved its initial public offering in 2021 without ever mentioning that it had to register its business. They also called into question the motivation and fairness of the lawsuit as SEC Chair Gary Gensler had previously testified around the same time that the agency lacked statutory authority to regulate crypto exchanges.

Coinbase Challenges Asset Classification

In addition to their other arguments against dismissal, Coinbase notably took issue with how their listed assets were classified as securities by arguing that they are not securities at all. This was supported by pointing out that Gensler testified around the same time as well about Congress needing to fill in any potential regulatory gaps when it comes to digital assets instead of leaving it up to other agencies like them.

Motion To Dismiss Case

Given these facts, Coinbase made clear their intention to file a motion for dismissal in order for them not be held accountable for something they did not even necessarily know was illegal when they first went public back in 2021 according to what was said by those involved at both agencies during those times.

Conclusion

Overall, this ongoing dispute between two major players in finance is sure be an interesting one going forward due many different parties involved with their own interpretations on what should or should not be done regarding these virtual currencies now being traded globally across many platforms online daily so we will have wait and see who ultimately wins out in court eventually before anything else can be said definitively either way when it comes down final judgement later down line regarding such matters moving forward from here on out