NASAA Oppose Special Treatment of crypto in Coinbase Case
In a filing on October 10 in the US District Court for the Southern District of New York, the North American Securities Administrators Association (NASAA) argued that digital assets do not need to be given a different treatment when it comes to the application of securities laws.
Digital assets shouldn’t be viewed as “somehow special,” and actions against Coinbase shouldn’t be viewed as “novel or extraordinary,” regulators from a North American securities group said.
On the grounds that it had broken federal securities laws on a publicly traded cryptocurrency exchange, the SEC filed a lawsuit against Coinbase in June. Coinbase said that the digital goods and services it offered did not meet the criteria for securities and that the government was going above and beyond those requirements.
The general counsel for NASAA, Vincente Martinez, claimed that “The SEC’s theory in this case is consistent with the agency’s longstanding public position, the positions advanced by state securities regulators, and even the understanding of digital asset issuers.” Also said was that the SEC’s stance is neither “novel or extraordinary.”
The organization argued that the SEC does not need explicit consent from Congress in order to apply established legislation to digital assets. One of the primary grounds of disagreement in the litigation is likely to be the judge’s application of the Howey test. The test’s requirements aren’t all met, according to Coinbase, for digital assets.
According to Martinez, “The Court should reject Coinbase’s attempt to shave down and improperly apply the preexisting legal framework in order to avoid being subject to the same regulatory obligations as all other participants in the Nation’s securities markets.”
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