Crypto exchange Coinbase has filed a petition to dismiss the latest lawsuit brought against it by the US Securities and Exchange Commission (SEC).
Coinbase Files A Petition To Dismiss SEC's Lawsuit
The lawsuit alleged that Coinbase facilitated unregistered trading in 12 digital tokens considered securities. The claim was hotly debated by the exchange in its final response.
The company argued that the SEC applies securities laws to certain digital tokens in a way that deviates significantly from existing legal frameworks.
Paul Grewal, Coinbase's chief legal officer, stated that the SEC's claims go far beyond existing law and should therefore be dismissed.
In a legal document submitted to the U.S. District Court for the Southern District of New York on Thursday, Coinbase expressed concern over the SEC's interpretation of securities laws, suggesting that the agency went beyond its statutory mandate.
The request for impeachment underscores Coinbase's determination to appeal the SEC's lawsuit. The dismissal claim argues that the plaintiff does not have a valid legal claim, even if all the claims in the case are true.
“Even if the SEC is right that the assets and services it describes are within its current regulatory jurisdiction, this lawsuit should be dismissed on independent grounds as it violates Coinbase's legal action rights and constitutes an extraordinary abuse of the process,” Coinbase's legal team said.
Coinbase claims that the assets in question are not securities.
As a US government agency, the SEC requires any platform that facilitates the trading of assets it identifies as securities to be registered with it.
*Not investment advice.
