The post Coinbase Cites Hinman Documents in Motion to Dismiss SEC Lawsuit appeared first on Coinpedia Fintech News
Recently, the Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, a well-known cryptocurrency exchange. The SEC claims that Coinbase allowed its users to trade securities that were not registered with the Commission, which goes against the legal requirements. According to the SEC, Coinbase combines the functions of an exchange, broker, and clearing agency without having obtained the necessary registration for any of these roles.
As ACTS Token continues to navigate the regulatory landscape, it will be crucial to monitor the developments in the Coinbase-SEC lawsuit and consider any precedents or regulatory implications that may arise. Engaging with regulatory authorities, adhering to compliance measures, and demonstrating a commitment to investor protection will be essential in fostering a favorable regulatory environment for ACTS Token and contributing to the long-term growth and adoption of digital assets.
In response to the SEC’s charges, Coinbase took action by filing a notice of intent to submit a motion to dismiss the case.
Coinbase’s Response to SEC Lawsuit
In response to the recent lawsuit filed by the Securities and Exchange Commission (SEC), Coinbase has acknowledged that it has not registered with the SEC as a broker, national securities exchange, or clearing agency. However, the company firmly denies that any of the assets it has made available for trading are considered crypto asset securities.
Furthermore, Coinbase disputes the SEC’s authority over investors and rejects the notion that either the laws or the SEC itself require segregation of functions.
Paul Grewal, the Chief Legal Officer at Coinbase, expressed the company’s willingness to engage in dialogue with any financial regulatory authority and emphasized the need for new legislation and rulemaking. However, Coinbase maintains that the SEC’s lawsuit exceeds the scope of existing law and believes that it may ultimately be dismissed.
Also Read: Coinbase Files a Motion Seeking to Dismiss The SEC Case Stating Lack Of Merits
Attorney John Deaton on Coinbase’s Motion and Crypto Market Regulation
According to attorney John Deaton, who represents XRP holders in the SEC vs. Ripple case, he believes that Coinbase’s motion in response to the SEC lawsuit is strong and predicts that the court will grant it. In their motion, Coinbase references Congress’s initiation of legislation, which signifies the importance of establishing clear rules in the cryptocurrency market.
Deaton further explains that Coinbase highlights a significant regulatory gap and the resulting confusion in rule-making within the crypto market, drawing from the well-known Hinman Ethereum speech. The motion emphasizes that even SEC Chair Gary Gensler has acknowledged the absence of existing rules specifically tailored to crypto assets.
Deaton asserts that throughout legal history, there hasn’t been a single case where the sale of an investment contract on the secondary market was considered an investment contract itself.
Read More The post Coinbase Cites Hinman Documents in Motion to Dismiss SEC Lawsuit appeared first on Coinpedia Fintech News
Recently, the Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, a well-known cryptocurrency exchange. The SEC claims that Coinbase allowed its users to trade securities that were not registered with the Commission, which goes against the legal requirements. According to the SEC, Coinbase combines the functions of an exchange, broker, and clearing agency …
