Coinbase has submitted paperwork to have the SEC case thrown out for lack of substance
After listing the same digital assets as securities, Coinbase claims that the SEC allowed it to go public.
Coinbase Global Inc. (NASDAQ: COIN) has filed a petition in the United States District Court for the Southern District of New York asking that the accusations against it in the Securities and Exchange Commission’s (SEC) complaint be dismissed for lack of merit.
The trading platform asserts that the SEC was aware of all activities, including staking and listing, when it approved Coinbase’s proposal to go public in May 2021.
According to the 177-page document published by Coinbase, the SEC’s complaints stem from allegations that 12 of the cryptocurrencies available for trading on the platform are securities. However, it’s worth noting that six of the twelve digital assets listed were already trading on Coinbase when it received SEC approval to go public. Since the SEC has not yet designated cryptocurrency as a security, Coinbase argues that pending litigation should be dropped immediately.
Coinbase has said it is willing to meet with any regulatory entity, including the SEC, to discuss the way ahead, which sounds a lot like its demand for arbitration with users in California, granted by the Supreme Court.
Coinbase argues that the SEC needs more power to govern the emerging cryptocurrency business because Congress still needs to enact the appropriate laws.
Since the crypto industry is a global, developing economic sector, Coinbase argues that new laws must be enacted by Congress to govern it. The United States risks falling behind technologically advanced countries like Europe, China, and Singapore if it does not adopt clear cryptocurrency regulations.