The US Securities and Exchange Commission (SEC) has opposed Coinbase’s motion to dismiss the charges against it.
on July 7th filingThe regulator stated that Coinbase was aware of the potential application of federal securities laws to its operations.
The SEC and Coinbase know that securities law can apply to its business
According to the regulator, the exchange knew the risks of its conduct but chose to take “these risks in the name of growing its business.”
“Since going public, Coinbase has worked again and again It informed its shareholders of the risks that crypto assets traded on its platform could be considered securities, and therefore its conduct could violate federal securities laws.”
The Securities and Exchange Commission announced that Coinbase has admitted that it is not registered to sell the securities. However, the exchange objects to the regulator’s classification of the cryptocurrencies it offers as securities.
The committee responded that “at least 13 of the crypto assets that Coinbase makes available for trading are investment contracts, and therefore securities.”
Read more: The best Airdrops are coming in 2023
Coinbase lawyer argues against SEC move
Meanwhile, Coinbase’s Chief Legal Officer Paul Grewal He said The SEC proposal did not say anything new. Grewal argued that the regulator ignored Howey’s primary requirement of enforceable rights against the issuer in the investment contracts.
Grewal said the committee ignored Chairman Gensler’s testimony to Congress that it lacked legal authority over businesses like Coinbase. In addition, the lawyer stated that the regulator was ignoring the Supreme Court’s “clear and unequivocal warnings” against regulatory overreach.
“(The SEC) disregards its obligation to give due consideration to the public interest and investor protection when it allowed us to list publicly more than two years ago.”
Meanwhile, Grewal noted that the regulator and Coinbase agreed that the crypto industry needs regulatory clarity.
According to the court document, SEC attorneys and Coinbase will meet and consult on July 10.
A legal battle for the SEC and Coinbase
Along with the SEC’s charges against Coinbase, the two organizations have been involved in a protracted legal battle regarding the lack of regulations for the cryptocurrency industry.
On June 16, the cryptocurrency exchange criticized the regulator for dodging its rulemaking petition. exchange argue That the SEC refused to provide regulatory clarity while demanding compliance with non-existent rules.
Under Gensler’s presidency, the SEC has repeatedly stated that current securities law adequately governs the crypto space. However, many crypto stakeholders, including Coinbase, have argued that the industry needs dedicated regulations.
Read more: Best Crypto Signup Bonuses in 2023
The post Coinbase vs. SEC: Regulator Denies Exchange Traffic From Exchange appeared first on BeInCrypto.