American cryptocurrency exchange Coinbase seeks to dismiss the SEC lawsuit
American cryptocurrency exchange Coinbase has filed a motion to dismiss a lawsuit brought by the Securities and Exchange Commission (SEC). The motion argues that cryptocurrencies are not investment contracts or securities, and therefore fall outside the SEC’s jurisdiction.
Main points:
- The SEC accused Coinbase of failing to register as a national securities exchange, clearing agency, and broker
- The agency alleged that Coinbase violated securities laws by offering unregistered assets on its platform
- Coinbase argued that the SEC violated due process and disregarded the true definition of the Howey Test
- The exchange asserted that the transactions on its platform do not constitute investment contracts or securities
- Coinbase claimed that it does not operate as a broker solely because it offers wallet software
In its defense against the SEC lawsuit, Coinbase maintains that the SEC’s claims must be dismissed as cryptocurrencies are not investment contracts or securities. The exchange argues that the SEC has violated due process and disregarded the true definition of the Howey Test. Coinbase asserts that the transactions on its platform are asset sales, not investment contracts, and that it does not operate as a broker solely because it offers wallet software.
Hot Take:
Coinbase’s motion to dismiss the SEC lawsuit highlights the ongoing regulatory challenges faced by cryptocurrency exchanges. The outcome of this case could have significant implications for the classification and regulation of cryptocurrencies in the United States.