Per a Reuters report, the US Securities and Exchange Commission (SEC) has urged a federal judge to reject Coinbase’s motion to dismiss the regulator’s lawsuit against the prominent cryptocurrency exchange.
The SEC’s action disputes Coinbase’s reliance on a recent court ruling involving Ripple Labs, emphasizing a subsequent ruling in the Terraform Labs case that differs in reasoning.
Coinbase Role As Exchange Under Scrutiny
The SEC’s filing on Tuesday highlights the agency’s intent to leverage the Terraform Labs ruling to raise questions about the court’s decision in the Ripple case, a victory widely celebrated by the crypto industry.
In June, the SEC initially sued Coinbase, alleging that the exchange operated unlawfully as a national securities exchange, broker, and clearing agency without proper registration.
In response, Coinbase sought the dismissal of the case in August, contending that the SEC lacked jurisdiction in pursuing the lawsuit since the digital assets and services in question did not meet the criteria for securities.
In its filing, the SEC stated that apart from the Wallet application, Coinbase did not dispute its role as an exchange, broker, and clearing agency.
The agency argues that the crypto exchange facilitated transactions involving investment “contracts and securities,” asserting that each crypto asset issuer enticed investors, including purchasers on Coinbase’s platform, with the reasonabl
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Author: Ronaldo Marquez
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