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Crypto vs. Dollar

📌 SEC claims Coinbase “just doesn’t like the answer”.

The U.S. Securities and Exchange Commission (SEC) has rejected cryptocurrency exchange Coinbases claim that it is attempting to manipulate the interpretation of the questions themselves into controlling issues in an ongoing lawsuit. Coinbase

– The U.S. Securities and Exchange Commission (SEC) has rejected cryptocurrency exchange Coinbase’s claim that it is attempting to manipulate the interpretation of the questions themselves into “controlling issues” in an ongoing lawsuit.

Coinbase’s attempt to manipulate the issues on appeal into issues subject to U.S.S.G. § 1292(b) is self-defeating. § 1292(b) is self-perpetuating,” the SEC said in a May 10 filing in the U.S. District Court for the Southern District of New York.

The SEC also reiterated that Coinbase “hates” the Howey test (the SEC’s standard for determining what constitutes a security) and the existing securities regulatory system, saying it organizes its business in such a way that compliance with existing laws becomes “costly.”

Coinbase simply doesn’t like that response. Having created the weather, Coinbase can’t complain when it rains.”

This comes after Coinbase filed a preliminary appeal on April 12, arguing that an investment contract cannot exist without post-sale obligations.

The SEC disagreed, and Coinbase said the question of whether this is the case is controlling and represents a key legal issue that will materially affect the outcome of the litigation.

However, the SEC argued that Coinbase argues that this issue is controlling only because the exchange fails to provide a clear explanation of what “contractual obligations” are.

The SEC stated that “Coinbase remains unable to offer a single coherent version of this theory, which it now asserts is the controlling issue.”

However, the SEC argues that in 80 years, no court has ever required “contractual obligations” after a sale.

‘The fact that Coinbase proposes a new legal test and the court disagrees with its rejection does not justify a preliminary examination,’ the SEC said.”

The SEC added: “However, Coinbase’s decision and its desire to rewrite decades-old precedent to suit its own policy goals and business needs is not a basis for prematurely certifying the appeal in this case.”

The SEC filed suit against Coinbase in June 2023, alleging that the cryptocurrency exchange violated federal securities laws by offering 13 tokens that it claimed were securities.

Coinbase argued that transactions on its exchange are not regulated by the SEC and therefore should not be considered securities. However, the SEC took the opposite view.

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