coinbaseUS-based crypto exchange, Securities and Exchange Commission petitions to dismiss lawsuit In June.
In a document filed August 4 in the U.S. District Court for the Southern District of New York, attorneys for Coinbase they presented A motion arguing that the SEC has “violated due process, abused discretion, and abandoned previous comments on securities laws” while asserting its regulatory authority over the crypto exchange. legal team It showed the precedent of the SEC vs case. fluctuationwhere the judge decides on XRP (XRP) do not qualify as securities under current Commission standards.
In particular, Coinbase disputed the fact that the 12 tokens involved in the SEC lawsuit met the definition of their transactions. “investment contracts” second Howey test is this the stock market works as an unregistered brokerHe also argued that the Commission objected to the staking program. “They rightfully fail”. The cryptocurrency company asked the court to dismiss the case, arguing that the SEC’s executive action was wrong. “punitive” And It is an abuse of power conferred by Congress.
By ignoring this precedent, the SEC violated due process, abused its discretion, and abandoned its previous interpretations of securities laws. Ignoring this precedent, the SEC overstepped the strict core mandates granted by Congress. 2/3
By ignoring this precedent, the SEC violated due process, abused its discretion, and abandoned its previous interpretations of securities laws. Ignoring the predecessors, the SEC broke the strict limits on its core authority set by Congress. 2/3
— paulgrewal.eth (@iampaulgrewal) August 4, 2023
The SEC filed a lawsuit against Coinbase on June 6, nearly three months after the exchange received a federal notice from Wells. The company has always denied the SEC’s allegations about potential violations of securities laws and announced on August 3 during an earnings call. made a proposal for warehouse.
In addition to Coinbase, the SEC is following Enforcement proceedings against Binance And Richard HeartFounder of Hex. US lawmakers recently enacted a law if signed, It could redefine the Commission’s authority over digital assets.
Translation of Matteo Carrone