Coinbase, the largest U.S. crypto exchange, moved on Wednesday to declare its intention to file a motion to dismiss the charges brought against it by the Securities and Exchange Commission (SEC).
Coinbase rejected SEC's accusations!
According to Coinbase's response, it acknowledges that it is not registered with the SEC as a broker national securities exchange or clearing house. But it denies that any of the assets it makes available for trading include crypto asset securities.
He also denies that the commission has authority regarding investors and that the law or the SEC requires separation of functions.
Coinbase Chief Legal Officer Paul Grewal said he welcomes dialogue with any financial watchdog and called for new legislation and rulemaking moving forward. But he argues that this SEC case goes beyond current law and could be dismissed.
No crypto rules?
Lawyer John Deaton, counsel for XRP holders in the US SEC vs Ripple case, stated that Coinbase's move is strong but he is confident it will be upheld by the court. The motion stated that it is important for Congress to initiate legislation and demonstrate its intent to make rules.
He added that Coinbase used the infamous Hinman Ethereum speech to discuss a major regulatory gap and further confusion regarding rule-making in the crypto market. He emphasized that SEC Chairman Gary Gensler acknowledged that there are no such existing rules for crypto assets.
Deaton noted that there is not a single case in history where a secondary sale of an investment contract was also found to be an investment contract.