Popular cryptocurrency exchange Coinbase is taking a firm stance against the Securities and Exchange Commission (SEC) lawsuit filed against them.
Coinnase Requests SEC Litigation Dismissed
The company's Chief Legal Officer, Paul Grewal, announced that Coinbase will attempt to dismiss the SEC's lawsuit and will firmly demonstrate their belief that they will prevail in the legal battle.
The SEC sued Coinbase on June 6, accusing the exchange of selling unregistered securities and operating as an unregistered securities exchange. However, Grewal noted that Coinbase will file a petition to dismiss the lawsuit entirely.
The company plans to argue that it has never listed securities on its platform and that the SEC has no regulatory authority over cryptocurrency exchanges.
Moreover, Coinbase claims that the SEC previously did not specify any requirements for registration when Coinbase announced its registration statement, which went into effect in April 2021.
During the second-quarter earnings call on Aug. 3, Grewal expressed confidence in their legal standing, saying: “With regard to the case with the SEC, I want to be very clear. We think we can win. We hope to win.”
The petition calling for the case to be dropped is scheduled to be filed today, and Coinbase expects the court to consider its arguments by the end of October.
Grewal emphasizes that their primary goal is to provide regulatory clarity in the cryptocurrency industry. It draws attention to the current conflicting messages surrounding crypto regulations. It highlights the importance of a clear legal framework to foster innovation and growth in this field.
*Not investment advice.