The SEC Opposes Coinbase’s Motion to Dismiss Lawsuit
The United States Securities and Exchange Commission (SEC) has filed a response opposing Coinbase’s motion to dismiss a lawsuit. The SEC reiterated its belief that some of the cryptocurrencies listed on Coinbase’s platform are investment contracts subject to SEC registration. The regulator argued that Coinbase has known all along that these cryptocurrencies are securities and recognized this in its filings with the SEC. The SEC also dismissed Coinbase’s argument invoking the “major questions doctrine,” stating that it does not assume any new power beyond what the federal securities laws authorize it to do.
Coinbase and Others Respond
Coinbase’s legal chief, Paul Grewal, responded to the SEC’s arguments on Twitter, claiming that the assets listed on Coinbase are not securities and are not within the SEC’s jurisdiction. Miles Jennings, a16z crypto’s general counsel, also criticized the SEC’s opposition, stating that it has many holes and even if the court were to agree with the regulator’s main contention, the case should still fail due to the SEC’s definition of an investment contract having “endless breadth.”
Hot Take: The Battle Continues Between Coinbase and the SEC
The ongoing legal battle between Coinbase and the SEC shows no signs of resolution. The SEC is adamant that some of the cryptocurrencies listed on Coinbase’s platform are investment contracts subject to regulation, while Coinbase maintains that these assets are not securities. As both sides present their arguments in court, the outcome of this case will have significant implications for the regulation of cryptocurrencies in the United States. Regardless of which way the decision goes, it is clear that this clash between Coinbase and the SEC is shaping up to be a landmark case for the cryptocurrency industry.
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