The U.S. Securities and Exchange Commission has asked a federal judge to dismiss Coinbase's motion to dismiss a lawsuit from the regulator.
In an October 3 filing in a New York district court, the SEC responded to the claims in Coinbase Motion to Dismiss and reiterated its belief that some of the cryptocurrencies listed on its platform were investment contracts under the Howey test subject to SEC registration.
"Each issuer of cryptoassets encouraged investors, including purchasers of the Coinbase platform, to reasonably expect that the value of their investment would increase based on the issuer's widely publicized plan to develop and maintain the value of the asset," the SEC wrote.
The SEC claimed that Coinbase "has known all along" that the cryptocurrencies it sells are securities if they meet the Howey test and alleged that the exchange acknowledged this in its filings with the SEC.
The regulator also dismissed Coinbase's argument invoking the "important questions doctrine" that the SEC has no authority over the crypto market until Congress says so.
"The SEC has not assumed any new power to do what the federal securities laws do not expressly authorize it to do," the SEC said.
In an October 3 are not within the jurisdiction of the SEC."
He @SECgov just filed his opposition to our motion to dismiss his case against @Coinbase. It's more of the same old thing. But don't just take my word for it - see for yourself. 1/7 https://t.co/QMdkRoiq0V
— paulgrewal.eth (@iampaulgrewal) October 3, 2023
Grewal claimed that the SEC's arguments in its response would mean that "everything from Pokémon cards to stamps to Swiftie bracelets are also securities."
Related: SEC takes legal action against FTX auditor
Miles Jennings, general counsel at a16z crypto, stated in an X post that the SEC motion “has a lot of holes.”
The SEC's opposition to @coinbaseThe movement has many holes. Even if the court agreed with the SEC's main argument (that investment contracts do not require legal contracts), the SEC's case would still have to fail.
As we discussed in our August report, the SEC's theory of... https://t.co/RTzlutSM9t
- miles jennings (@milesjennings) October 3, 2023
Jennings added that even if the court agreed with the regulators' main argument about investment contracts, then the case "should still fail," as he believes the SEC's definition of an investment contract is "broad." infinite".
Magazine: Are DAOs overrated and unviable? Lessons from the front
Post navigation
