The US Securities and Exchange Commission (SEC) has responded to Coinbase's claims that the regulator lacks jurisdiction to prosecute the crypto exchange.
The US Securities and Exchange Commission (SEC) Has Responded to Coinbase
The US Securities and Exchange Commission (SEC) has responded to Coinbase's claims that the regulator lacks jurisdiction to prosecute the crypto exchange.
The SEC said that Coinbase openly informed its shareholders about the possibility of assets exchanged on its platform being categorized as securities, showing that it was aware of the likelihood that federal securities regulations would apply to its operations.
Additionally, the SEC charged Coinbase of disregarding more than 75 years of precedent-setting Howey case law in an effort "to construct its own test for what constitutes an investment contract."
This letter is in response to a prior document that Coinbase sent in which the exchange informed the court that it intended to submit a move for judgment. The SEC Chair Gary Gensler is mentioned by Coinbase as having testified before Congress and purportedly said that "only Congress could confer authority to regulate crypto exchanges" and that "there is not a market regulator around these crypto exchanges."
On June 6, the regulator charged Coinbase for allegedly offering unregistered securities since 2019. On July 13, a pre-motion conference for the case, which is used to determine what is necessary to move the case to trial and set important dates, is scheduled.
