SEC asks judge to reject Coinbase’s Lawsuit Dismissal Request

SEC rejects Coinbase’s lawsuit dismissal request, maintains crypto assets are securities, sparking debate in the cryptocurrency industry.
SEC asks judge to reject Coinbase's Lawsuit Dismissal Request
SEC asks judge to reject Coinbase’s Lawsuit Dismissal Request

In response to Coinbase’s plea for the action against them to be dismissed, the United States Securities and Exchange Commission (SEC) urged a federal judge to deny the motion on October 3.

The SEC reaffirmed its stance that certain cryptocurrencies offered on the Coinbase platform should be regarded as investment contracts under the Howey Test and hence require registration with the SEC in a filing submitted to a New York District Court, challenging Coinbase’s reasons for dismissal.

According to the SEC, Coinbase “knew all along” that the cryptocurrency it provides would be categorized as securities if they satisfied the requirements of the Howey Test. In addition, the SEC claimed that Coinbase stated this fact in its presentations to the SEC.

The regulator also disregarded Coinbase’s claim that it had jurisdiction over the cryptocurrency market because of the “major questions doctrine,” which said that the SEC didn’t have such jurisdiction unless Congress specifically allowed it.

The legal director of Coinbase, Paul Grewal, stated on Twitter that the SEC’s claims were “more of the same old same old” and that the assets listed there “are not securities and are not within the SEC’s jurisdiction.”

A16z Crypto’s general attorney Miles Jennings wrote on Twitter that the SEC’s motion “has a lot of holes.”

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