Crypto News– Coinbase has presented its final attempt to dismiss a lawsuit brought by the United States Securities and Exchange Commission (SEC), arguing that the SEC exceeded its jurisdiction when it classified cryptocurrencies listed on Coinbase as securities.
Coinbase Challenges SEC’s Crypto Oversight in Last-Ditch Effort to Dismiss Regulatory Lawsuit
In a filing dated October 24 in a New York District Court, Coinbase criticized the SEC, contending that the SEC’s definition of what qualifies as a security was overly broad and disputed that the cryptocurrencies listed on the exchange fell under the regulator’s purview.
According to Coinbase, “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.”
Coinbase further asserted that the SEC has embarked on a “radical expansion of its own authority,” claiming jurisdiction “over essentially all investment activity,” a prerogative that rests solely with Congress under the major questions doctrine.
In an October 24 blog post, Coinbase’s Chief Legal Officer, Paul Grewal, reiterated these claims, stating that the SEC’s definitions lack any limiting function.
Coinbase’s recent filing is a response to the SEC’s October 3 rebuttal, in which the SEC urged the court to reject Coinbase’s motion for dismissal. The SEC reiterated its stance that various cryptocurrencies listed by Coinbase qualify as investment contracts under the Howey test. The SEC initially sued Coinbase on June 6, alleging that the exchange had violated U.S. securities laws by listing several tokens it considered securities without registering with the regulator.
Coinbase had filed a motion for judgment on June 29, arguing that the SEC was abusing its authority and infringing on Coinbase’s due process rights.
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