Leading cryptocurrency exchange, Coinbase has officially filed a motion asking the court to dismiss the ongoing lawsuit from the SEC.
Coinbase has officially filed a motion to dismiss the lawsuit from the United States Securities and Exchange Commission. The development was shared today by Paul Grewal, Coinbase’s Chief Legal officer.
“Today, Coinbase filed our brief asking the Court to dismiss the SEC’s case against us,” Grewal said today on X, formerly Twitter.
Today, @coinbase filed our brief asking the Court to dismiss the SEC’s case against us. Our core argument is simple — we do not offer "investment contracts" as that term has been construed by decades of Supreme Court and other binding precedent. 1/3 https://t.co/r2EkDgkEuc
— paulgrewal.eth (@iampaulgrewal) August 4, 2023
Coinbase Doesn’t Offer Investment Contracts
Grewal noted that Coinbase’s main argument is that it does not offer investment contracts- a special type of securities- as defined by decades of Supreme Court cases and other legal precedents.
He accused the SEC of abusing its discretion, violating due process, and abandoning its own interpretations of the securities laws.
Furthermore, Grewal said the SEC had overstepped its authorities set by Congress by ignoring other binding legal precedents.
It is worth noting that the development comes a few hours after Grewal disclosed that the exchange would file an order seeking to dismiss the SEC’s lawsuit.
Recall that the SEC sued Coinbase in June, alleging that the cryptocurrency exchange sold unregistered securities, including ADA.
The regulatory agency also alleged that Coinbase operated an unregistered securities exchange. Notably, the SEC sued Coinbase after sending a Well Notice to the company earlier this year.
Meanwhile, Coinbase has reiterated that it never listed securities on its platform, adding that the Commission does not have regulatory authority over cryptos.
It bears mentioning that Grewal is confident that Coinbase will win the lawsuit brought by the SEC. He speculated that the court would consider the argument at the end of October.