Coinbase Files Motion to Dismiss SEC Lawsuit, Citing Violation of Due Process
Coinbase has filed a motion to dismiss the SEC’s lawsuit, arguing that the agency violated due process and departed from its earlier interpretations of securities laws. The company also expressed concerns over the SEC’s enforcement approach, stating that it undermines the separation of powers.
Main Breakdowns:
- Coinbase’s lawyers argue that the SEC violated due process and abused its discretion.
- They also highlight Chairman Gary Gensler’s acknowledgment of a “regulatory gap” for crypto exchanges.
- The SEC’s dismissal of Gensler’s statement and the Hinman Speech emails are cited as evidence.
- Attorney John Deaton emphasizes that if the SEC lacks jurisdiction over digital assets, enforcement actions violate the separation of powers.
- While the SEC has authority over securities, there are limits to its jurisdiction.
Hot Take: Coinbase’s motion to dismiss raises important questions about the SEC’s jurisdiction and enforcement approach. If the SEC lacks authority over digital assets and crypto exchanges, their actions may indeed violate the separation of powers. This case highlights the need for clear regulations and a regulatory framework for the crypto industry.