Coinbase Seeks Dismissal of SEC Lawsuit
Coinbase Global Inc. has requested that the Securities and Exchange Commission’s (SEC) complaint charges be dismissed for lack of merit in a motion filed in the United States District Court for the Southern District of New York.
Coinbase claims that the SEC was aware of all operations, including staking and listing, when it accepted its plan to go public in May 2021. The exchange claims that 12 of the listed crypto tokens traded on the exchange are securities. However, when the SEC authorized Coinbase to go public, six of the twelve digital assets were already trading there. Coinbase claims that the legal claims should be abandoned immediately, as the SEC did not classify any of the crypto assets as securities at the time.
The company claims that Congress must enact new legislation to regulate the global market, as it risks losing its technological edge to regions like Europe, China, and Singapore that have already implemented clear cryptocurrency legislation. Coinbase’s push for arbitration with users in California is similar to the Supreme Court’s grant of California arbitration.
(With inputs from Shikha Singh)
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