Coinbase Was Aware Of Securities Law Violations
The Securities and Exchange Commission (SEC) of the United States has filed a response to Coinbase’s claims that the SEC lacks jurisdiction to prosecute the crypto exchange.
According to the SEC’s July 7 letter to a district judge, Coinbase was aware of the possibility that federal securities laws would apply to its operations, openly informing its shareholders about the possibility of assets traded on its platform being classified as securities.
“Since becoming a public company, Coinbase has repeatedly informed its shareholders of the risk that the crypto assets traded on its platform could be deemed securities and therefore that its conduct could violate the federal securities laws,” reads the regulator’s response.
As per the SEC, Coinbase is a “multi-billion-dollar entity advised by sophisticated legal counsel” that is deliberately “ignoring more than 75 years of controlling law under Howey” in an attempt “to construct its own test for what constitutes an investment contract.“
The letter is in response to Coinbase’s previous filing. The exchange notified the court of its intention to file a motion for judgement on June 28. A motion for judgment is used when a party believes there is no real dispute about material facts in a case, according to Cornell University.
(With inputs from Shikha Singh)
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