Coinbase filed a motion to dismiss the SEC lawsuit in its entirety, seeking clarity in crypto regulation.
Coinbase Makes a Major Move in SEC Lawsuit
On Friday, July 4, Coinbase filed a new motion seeking to dismiss the lawsuit started by the U.S. Securities and Exchange Commission (SEC) entirely, after hinting at the major move in yesterday’s Shareholder letter on the platform’s Q2 earnings.
In the filing, Coinbase claims that the regular is exceeding its authority by suing the cryptocurrency exchange because the platform does not offer “investment contracts”.
“The transactions over Coinbase’s platform and Prime are not, and do not involve, contractual undertakings to deliver future value reflecting the income, profits, or assets of a business. They are commodity sales, with the obligations on both sides discharged entirely the moment the digital token is delivered in exchange for payment,” the filing stated.
The crypto exchange also referred to the recent ruling partially in favor of Ripple in a similar case against the SEC, saying that the core facts were “substantially identical to those alleged here.” However, there’s no guarantee that the court will consider this argument, because another crypto company Terraform Labs also recently tried to cite the Ripple’s case but was rejected by Judge Rakoff.
Ongoing Legal Battle Against SEC
As it was recently revealed, before suing the exchange, the SEC first asked Coinbase to halt all crypto trading except that of Bitcoin, arguing that all other digital assets are viewed as securities. Coinbase decided to
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Author: Olga Krasilnikova
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