2023-06-29 19:31:57
© Reuters Coinbase Attempts To Dismiss SEC Lawsuit Calling It ‘Extraordinary Abuse’
CriptoFácil – The legal battle between Coinbase (NASDAQ:) and the United States Securities and Exchange Commission (SEC), which began in early June, has gained a new chapter. The cryptocurrency exchange has filed a dismissal motion to try to end the SEC lawsuit.
In the filing, Coinbase called the regulator’s lawsuit “an extraordinary abuse.” Furthermore, it stated that the tokens it trades on its platform are not securities.
In the lawsuit against the cryptocurrency exchange, the SEC alleged that Coinbase facilitated the trading of 12 cryptocurrencies that are, in fact, securities. The list includes (SOL), (), (MATIC), The Sandbox (SAND), FLOW, ICP, NEAR, and .
Coinbase x SEC
This claim was strongly disputed by the exchange in its latest response. The company’s defense stated that these tokens are not investment contracts. Therefore, they are not securities.
“None of the assets that the SEC has now identified are actually securities. For this and other reasons, secondary transactions on these assets are also not securities,” the exchange said.
As Paul Grewal, Chief Legal Officer at Coinbase, highlighted, the SEC is applying securities laws to crypto assets in ways that deviate significantly from existing legal frameworks. For him, the SEC’s claims “go far beyond existing law”. Thus, they must be discarded.
In a legal filing filed Thursday in the U.S. District Court for the Southern District of New York, Coinbase expressed concerns about the SEC’s interpretation of securities laws. According to the company, the US regulator is acting beyond its legal authority.
In the rejection motion – a tool used to express a lack of confidence in an entity – Coinbase stated:
“Even though the SEC is satisfied that the assets and services it identifies are within the scope of its existing regulatory authority, the court must dismiss this action on independent grounds that it violates Coinbase’s due process rights and constitutes an extraordinary abuse of process,” said Coinbase’s legal team.
Finally, Coinbase highlighted that the financial regulator approved its IPO in April 2021 without suggesting that it should register its operations, nor did it classify any of its listed assets as securities at the time.
#Coinbase #Attempts #Dismiss #SEC #Lawsuit #Calling #Extraordinary #Abuse #CriptoFácil