Cryptocurrency exchange Coinbase is taking action against the Securities and Exchange Commission (SEC) as it seeks to dismiss a lawsuit filed by the regulatory agency. The SEC accused Coinbase of selling unregistered securities and operating as an unregistered securities exchange.
However, Coinbase’s Chief Legal Officer, Paul Grewal, is confident in their defense and believes they will emerge victorious from the legal battle. He stated during a recent earnings call that they “expect to win.”
In response to the June 6 lawsuit, Coinbase will argue in its motion for dismissal that it did not list securities on its platform. Furthermore, the exchange contends that the SEC lacks regulatory authority over cryptocurrency exchanges and never informed Coinbase of any requirement to register when their registration statement was declared effective in April 2021.
Today, Coinbase is set to submit the order for dismissal, and Grewal estimates that the court will carefully consider their arguments by the end of October.
Read More: Coinbase Shatters Q2 Revenue Expectations, Eyes Legal Victory Against SEC
Beyond winning the case, Coinbase has a larger goal in mind—to achieve regulatory clarity in the crypto space. Currently, conflicting messages from regulatory authorities regarding the legal status of cryptocurrencies like Ether (ETH) contribute to uncertainty. While the Chairman of the CFTC refers to ETH as a commodity, the SEC Chair has classified most cryptocurrencies, excluding Bitcoin, as securities.
The implications of this categorization debate extend beyond ETH and BTC and impact the broader cryptocurrency market. With the recent victory of XRP against the SEC, investors are hopeful that the agency’s case can be overturned if challenged. The industry faces uncertainty due to inconsistent regulations across jurisdictions.
ETH is currently trading at $1832, and BTC at $29132, both in their support zone with a slight decline. A bull rally is expected soon amidst the crisis in the crypto space.
Read More: Commodity or Security? Bitcoin Debate Rages On
Grewal highlights that many existing laws governing cryptocurrencies were written before the internet’s advent, leading to ambiguity and challenges in applying them to modern digital assets. Coinbase aims to address this issue and pave the way for clearer regulations in the cryptocurrency industry.
What do you think about Coinbase’s chances of winning the case against the SEC?
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