SEC rejects Coinbase's motion to end the trial
Date: 2023-07-09 Author: Karina Ziganova Categories: IN WORLD
The U.S. Securities and Exchange Commission (SEC) has opposed Coinbase's motion to dismiss the charges against it.
In a July 7 statement, the regulator noted that Coinbase was aware of the potential application of federal securities laws to its operations. According to the SEC, the exchange deliberately took risks in the name of business development.
"Since Coinbase went public, it has repeatedly informed its shareholders of the risk that crypto assets traded on its platform could be considered securities. Consequently, her conduct may violate federal securities laws."
The SEC reported that Coinbase admitted that it did not have registration for the sale of securities. However, the exchange continues to challenge the classification of cryptocurrencies that the regulator proposes. Recall that in early June, the Commission filed a lawsuit against the American platform, stating that at least 13 assets that are traded on Coinbase fall under the definition of securities
Coinbase lawyer does not agree with the position of the SEC
Meanwhile, Coinbase's chief lawyer, Paul Grewal, argues that the regulator ignored the most important requirement of the Howey test that investment contracts have enforcement rights against the issuer.
According to Grual, the Commission ignored Chairman Gensler's testimony in Congress that it had no legal authority over the crypto platform. The lawyer said that the regulator ignores the "clear and unmistakable warnings of the Supreme Court" about the inadmissibility of excessive regulation.
"The SEC ignored its commitment to give due consideration to the public interest and investor protection when it allowed us to conduct a public listing more than two years ago," he wrote.
Grual also noted that the exchange considers regulatory clarity to be absolutely essential for the further development of the crypto industry.
The next hearing in the Coinbase case will take place next week.
