Coinbase Submits Motion to Dismiss SEC Lawsuit, Arguing Claims Exceed Current Legal Framework
- Bridget Hubbard
- June 29, 2023
- news
- 0 Comments
Coinbase launches a strong counterattack against the SEC, filing for dismissal and advocating for improved regulation in the ongoing legal battle.
Key Points
- Coinbase counters the SEC’s case by filing an answer and notice of intent to dismiss, arguing that the claims go beyond existing law and should be dismissed.
- Coinbase expresses commitment to dialogue with regulators and supports new legislation and rulemaking for improved regulation of the industry.
- The recent filing follows Coinbase’s suit seeking redress from the court over the SEC’s alleged evasive maneuvers.
Coinbase, one of the top cryptocurrency exchanges in the United States, has launched a strong counterattack against the U.S. Securities and Exchange Commission (SEC) by filing an answer and notice of intent to file a motion to dismiss the SEC’s case.
Coinbase Files for Dismissal
In a tweet, Paul Grewal, the Chief Legal Officer of Coinbase, expressed the company’s belief that the claims made by the SEC in the lawsuit go beyond the existing law and should be dismissed. Coinbase argues that the SEC’s claims exceeded the legal limit and overstep the boundaries of the current legal framework for regulating the industry.
I rushed through 1st part of this, but in all my years of reading legal docs, the prose in this @Coinbase filing for dismissal is a thing of beauty.
Even if you’ve never read a legal doc, you will get it.
Go read it.
Coinbase is not messing around either:
These are not… https://t.co/Bw5tCb41L1
— Brad Nickel – Host: Mission DeFi & DeFi Lunch (@b05crypto) June 29, 2023
Commitment to Dialogue and New Legislation
Grewal’s tweet conveyed Coinbase’s commitment to dialogue with regulators, including the SEC. The company believes that new legislation and rulemaking are appropriate for regulating the industry, indicating their willingness to cooperate with regulators while advocating for improved regulatory measures.
Recent Filing Follows Suit for Redress
This recent filing comes shortly after Coinbase filed a suit seeking redress from the court. Coinbase seeks to address the SEC’s alleged evasive maneuvers in their initial lawsuit.
Crypto Community Reacts to Coinbase’s Response
Brad Nickel, a prominent crypto influencer, commended Coinbase’s filing for dismissal. He praised the clarity and eloquence of the legal arguments presented in Coinbase’s response, emphasizing that even those unfamiliar with legal documents could easily comprehend the content. Nickel encouraged others to read the filing and emphasized that Coinbase is taking the matter seriously.
Arguments Made by Coinbase
Nickel highlighted critical arguments made by Coinbase in their filing. One argument asserts that the assets in question were not securities from the beginning and did not meet the standard of an investment contract. This statement supports Coinbase’s position that the SEC’s claims exceed the legal boundaries. Furthermore, Nickel criticized SEC Chairman Gary Gensler, pointing out his previous statement acknowledging the lack of authority unless Congress takes action, while noting that Congress has not made any moves regarding cryptocurrency regulation.
As the legal battle between Coinbase and the SEC continues, Coinbase remains committed to defending its position and advocating for regulatory clarity in the cryptocurrency industry.
