Coinbase challenges SEC over regulatory lawsuit
Cryptocurrency exchange seeks to drop SEC regulatory lawsuit over US cryptocurrencies
Coinbase, the leading cryptocurrency platform in the United States, announced its intention to ask a judge to throw out the lawsuit filed by the Securities and Exchange Commission (SEC), alleging that the company has violated the law by failing to register your business.
In a letter filed with federal court in Manhattan just before midnight Wednesday, Coinbase argued that the SEC does not have the authority to bring civil suits because the assets traded on its platform are not “investment contracts” and , therefore, they are not considered values.
The SEC’s lawsuit against Coinbase was filed on June 6 and accuses the platform of making billions of dollars by acting as an intermediary in trading at least 13 crypto assets, or tokens, such as Solana, Cardano, and Polygon, which are supposed to have been registered as securities.
In addition, Coinbase is also facing a lawsuit related to its “staking” program, in which it pools crypto assets to support activity on the blockchain network, and in return provides “rewards” to customers after collecting fees for itself.
The SEC’s filing of this lawsuit against the exchange came a day after the same commission sued Binance, the world’s largest cryptocurrency exchange, accusing it of inflating trading volumes, mismanaging exchange funds, customers and provide false information about their operations.
SEC Chairman, Gary Gensler, has been working to strengthen the body’s jurisdiction over the cryptocurrency sector, which he believes undermines investor confidence in US capital markets.
K. Tovar
Source: Descifrado
(Reference image source: Ewan Kennedy, Unsplash)
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