In its last attempt to get a lawsuit filed by the securities regulator dismissed, Coinbase has claimed that the US SEC overreached its jurisdiction by classifying cryptocurrencies that are listed on the exchange as securities. They criticized the SEC in a filing on October 24 in an NYDC, arguing that the regulator’s definition of security had been too broad and the coins listed on the exchange were not subject to its jurisdiction. The SEC can only regulate securities transactions. Trades made on them had been only considered transactions involving securities in the event of “investment contracts,” and not all capital transfers made to make a profit are eligible. The trades under consideration here don’t.
The Legal Battle Continues Between Coinbase And SEC Amid Mixed Allegations
According to the company, the SEC had taken on a “radical growth in its jurisdiction” and asserted control over “the majority of investment activities,” both of which are things that only Congress is permitted to do by the concept of the key issues. Coinbase Chief Legal Officer Paul Grewal reiterated the assertions in an Oct. 24 X post, stating that the SEC’s criteria have “no limiting function at all.”
They have filed a response to the SEC’s rebuttal on October 3. In that response, the SEC reiterated its conviction that according to the Howey test, the bitcoins published on Coinbase were investment contracts and requested that the court reject their petition for dismissal. On 6th June, the SEC filed a lawsuit against the company, alleging that the exchange had broken US securities rules by offering several coins that it regarded as securities while avoiding registration with the watchdog. On June 29, Coinbase submitted a move for judgment, claiming that the SEC had been misusing its authority and infringing on Coinbase’s right to due process.
