Coinbase threatens to take SEC fight to Supreme Court if needed

Coinbase Inc. said it stands ready to take its legal fight with the US Securities and Exchange Commission all the way to the highest court in the nation as the government agency expands its crackdown on tokens it considers listed securities.

"If it's necessary to go to the Supreme Court, that's what we're prepared to do," Coinbase's top lawyer Paul Grewal said in an interview, adding that he believes the company will prevail. this issue is going to conclude that the SEC has been fundamentally wrong."

The SEC sued the largest U.S. crypto exchange on Tuesday, alleging in a 101-page complaint that the company has evaded the rules by allowing users to trade tokens that were actually unregistered securities. The regulator is seeking an order requiring Coinbase to comply with securities laws and forego what the agency says are ill-gotten gains.

Grewal said working on the enforcement actions could take many months or even years, though the agency's lawsuit applies to a limited subset of the company's revenue-generating businesses.

The SEC also alleged that Coinbase failed to register the offer and sale of its staking-as-a-service program, a business that offers users a return in exchange for placing tokens to help facilitate transactions over the blockchain.

In a separate matter, a US appeals court filed an order asking the SEC to send a letter within seven days to address whether it has denied Coinbase's rulemaking petition and how much additional time the agency requires. to take a decision.

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Updated: Jun 07, 2023 06:33am IST

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