Cryptocurrency exchange Coinbase offered a judge its final take on Tuesday as to why a lawsuit from the Securities and Exchange Commission (SEC) should be put to rest, arguing tokens are not securities and that the SEC has overstepped its regulatory bounds. The company outlined its stance in a legal brief for Southern District of New York Judge Katherine Polk Failla, as it pushed back against assertions made by the regulator in a 40-page rebuttal earlier this month. The SEC sued Coinbase in June, alleging the firm failed to register as an exchange, clearing house, and broker despite offering the services to customers. Coinbase’s argument is two-fold: Tokens traded on the exchange aren’t securities under criteria for so-called “investment contracts,” and the SEC is violating the Major Questions Doctrine that establishes limits on the regulators’ authority. Whether or not tokens traded on Coinbase constitute securities is a critical component of the SEC’s claims. In order to convince a court that Coinbase failed to register with the regulator, the SEC has to establish certain cryptocurrencies are indeed securities. Coinbase’s brief also invokes the Major Questions Doctrine, a theory referenced by the Supreme Court this year when it struck down President Joe Biden’s plans for student loan forgiveness and said it was unconstitutional. Coinbase is asking a judge to throw out the SEC’s case before it has really begun, arguing that tokens traded on the exchange are not securities and that the SEC has overstepped its regulatory bounds. The decision could come as soon as tomorrow, and a discovery phase could push a potential trial date out until the first quarter of 2025. #Coinbase #SEC #Cryptocurrency #CryptoLaw #Blockchain
You can read more about this topic here: Decrypt: Coinbase Submits Final Argument to Dismiss SEC Lawsuit
