Coinbase Global Inc. (NASDAQ: COIN), one of the leading cryptocurrency exchanges, has filed a motion requesting dismissing the Securities and Exchange Commission’s (SEC) complaint charges, citing a lack of merit. The motion, submitted to the United States District Court for the Southern District of New York, highlights Coinbase’s claim that the SEC allowed the exchange to go public with the same digital assets now being labeled as unregistered securities.
According to Coinbase, when the SEC approved its plan to go public in May 2021, the regulatory agency was fully aware of the exchange’s operations, including staking and listing. In a 177-page document, Coinbase revealed that the SEC’s accusations were based on the claim that 12 of the listed cryptocurrencies on the exchange are securities. However, it is noteworthy that when Coinbase received authorization to go public, six of the twelve digital assets in question were already actively traded on the platform. Coinbase argues that the SEC should abandon its legal claims since none of these crypto assets were classified as securities at the time of approval.
In a move reminiscent of its successful push for arbitration with users in California, which the Supreme Court granted, Coinbase expressed its willingness to engage in dialogue with regulatory authorities, including the SEC, to chart a way forward. The exchange’s Chief Legal Officer emphasized their readiness to address any concerns and cooperate with regulatory agencies.
Furthermore, Coinbase asserts that the SEC lacks the authority to oversee the rapidly evolving cryptocurrency industry due to the absence of necessary legislation passed by Congress. The exchange contends that new legislation must be enacted to regulate the cryptocurrency market, considering its global and emerging nature. Failing to do so would jeopardize the nation’s technological advantage, leaving regions like Europe, China, and Singapore, which have already implemented comprehensive cryptocurrency legislation, to take the lead.
Coinbase’s motion to dismiss the SEC’s complaint charges signals the exchange’s determination to challenge the allegations made against it. As the legal battle unfolds, the outcome will have significant implications for Coinbase and the broader cryptocurrency industry. Investors and stakeholders will closely monitor the proceedings, anticipating the resolution of this high-profile case.
