US Securities and Exchange Commission (SEC) sued a petition asking to dismiss the complaint of the crypto exchange Coinbase against the actions of the regulator.
According to the SEC statement, representatives of the exchange are trying to divert the court’s attention from fatal errors in their legal arguments.
The regulator believes that any attempt by Coinbase to deny the fact that it violated securities laws should be rejected. The cryptocurrency exchange justification is “fatally flawed,” he said.
As an argument, the SEC cites the fact that Coinbase could be an intermediary in securities transactions.
Exchange officials argue that cryptocurrency transactions do not meet the definition of an investment contract because the transaction does not establish an actual contract.
Coinbase General Counsel Paul Grewad called the SEC’s claims “the same old”:
The @SECgov just filed its opposition to our motion to dismiss their case against @Coinbase. It’s more of the same old same old. But don’t just take my word for it – take a look for yourself. 1/7 https://t.co/QMdkRoiq0V
— paulgrewal.eth (@iampaulgrewal) October 3, 2023
In June 2023, the SEC accused the crypto exchange of violating securities laws. In August, Coinbase decided to file a motion to dismiss the SEC’s lawsuit.
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