Coinbase Files Motion to Dismiss SEC Lawsuit
Crypto exchange Coinbase has taken a decisive step by filing a motion to dismiss the recent lawsuit brought against it by the U.S. Securities and Exchange Commission (SEC).
The lawsuit claimed that Coinbase facilitated unregistered trading of 12 digital tokens categorized as securities. However, Coinbase has vehemently disputed these allegations in its latest response.
The company argues that the SEC’s application of securities laws to certain digital tokens deviates significantly from existing legal frameworks. Paul Grewal, Coinbase’s Chief Legal Officer, asserts that the SEC’s claims “go far beyond existing law” and should, therefore, be dismissed.
In a legal document submitted on Thursday to the U.S. District Court for the Southern District of New York, Coinbase raises concerns about the SEC’s interpretation of securities laws, suggesting that the agency is overstepping its legal authority.