• The SEC has filed a lawsuit against Coinbase, accusing it of operating an unregistered securities exchange, broker, and clearing agency.
• In response, Coinbase has moved to file for dismissal of the case and argued that the SEC had approved its initial public offering without any mention of registration.
• Additionally, Coinbase took issue with the SEC’s classification of listed assets as securities, maintaining that they are not subject to the same regulations.
SEC Files Lawsuit Against Coinbase
The United States Securities and Exchange Commission (SEC) set the stage for a legal battle with Coinbase earlier this month by filing a lawsuit against the crypto exchange. The complaint alleged that Coinbase operated an unregistered securities exchange, broker, and clearing agency. Furthermore, it labeled several of its listed assets as unregistered securities in violation of securities laws.
Coinbase Seeks Dismissal Of Case
In response to these accusations, Coinbase revealed its intent to seek dismissal of the case in court documents dated Wednesday June 28th. 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. Additionally, Coinbase pointed out that SEC Chair Gary Gensler had testified around the same time that the agency lacked statutory authority to regulate crypto exchanges and Congress alone could fill this regulatory gap.
Coinbase Disputes Classification Of Listed Assets As Securities
Furthermore, coinbase also took issue with the SEC’s classification of listed assets as securities. The crypto exchange maintained that these assets are not subject to regulation under federal security laws and should thus be exempt from such requirements.
SEC Has Not Responded To Motion To Dismiss
At press time, there is still no word on how or when the SEC might respond to coinbase’s motion to dismiss their lawsuit against them. However if successful it could set an important precedent for how digital asset exchanges are regulated moving forward.
Conclusion
The legal battle between coinbase and the SEC is far from over but whether or not coinbase will be able to successfully argue for dismissal remains uncertain at this point in time . Only time will tell how this dispute plays out but either way it is sure to have lasting implications for digital asset regulation in America going forward .