Coinbase Takes on SEC’s Authority in A Final Attempt To Dismiss Lawsuit
The post Coinbase Takes on SEC’s Authority in A Final Attempt To Dismiss Lawsuit appeared on BitcoinEthereumNews.com.
Table of Contents Coinbase made its final attempt to get the lawsuit filed by the SEC dismissed. The crypto exchange argued the agency is acting beyond its scope by trying to control all investment activity and extending its definition of what qualifies as a security too wide. Cryptocurrency exchange Coinbase is taking the US Securities and Exchange Commission on again. On Tuesday, in a filing made in a New York District Court, Coinbase submitted its final arguments to try dismissing the lawsuit filed by the SEC. Coinbase: SEC’s Definition of a Security is Too Wide The SEC sued Coinbase in June, alleging it acted as an unregistered broker and exchange. In its arguments, the exchange challenged the securities agency and stated its definition of what constitutes a security is far too broad. Coinbase further argued the cryptocurrencies it lists are not under the SEC’s purview. Coinbase’s arguments read as follows: “The SEC’s authority is limited to securities transactions. Not every parting of capital with a hope of gain qualifies, and trades over Coinbase are only securities transactions if they involve ‘investment contracts.’ The transactions at issue here do not.” It further stated: “As the SEC now would have it, an investment contract exists if someone parts with capital and expecting that her purchase will increase in value.” “Radical Expansion of its Own Authority” Coinbase took the securities agency on by claiming it was acting beyond its scope by trying to exert control over all investment activity. The exchange states the SEC is attempting a “radical expansion of its own authority” and extended its jurisdiction “over essentially all investment activity”, which only Congress has the authority to do. Coinbase chief legal officer Paul Grewal supported the exchange’s claims and said the SEC’s definition of securities has “no limiting function at all.” …
Filed under: News - @ October 25, 2023 6:20 pm