Coinbase Attempts to Swiftly Dismiss SEC Allegations
SEC Allegations have been on the news through out the previous week. Here is what Coinbase has with regards to the SECURITY AND EXCHANGE COMMISION (SEC)
Coinbase faces a Tuesday deadline to respond to the Securities and Exchange Commission’s (SEC) counterarguments challenging the company’s motion to dismiss its significant enforcement action. In this final response, Coinbase is poised to reinforce two key legal arguments: firstly, that the tokens being traded are not considered investment contracts, hence not securities, and secondly, that the SEC is infringing upon the Major Questions Doctrine, which defines the relationship between regulatory agencies and Congress.
Read also: SEC to Greenlight Bitcoin Spot ETF in 2023 Says Galaxy Digital CEO
Coinbase Global Inc. (COIN) is set to present its ultimate argument on Tuesday, contending that a judge should release it from the SEC’s grip in their dispute over unregistered securities. In this concluding statement, Coinbase intends to reiterate well-established points. They assert that the SEC has not provided evidence to establish that the transactions involved investment contracts, as there is no proof of actual contracts in place. Furthermore, Coinbase will argue that the SEC is overstepping by regulating novel areas that require congressional action, as per the “major questions doctrine.”
Following Coinbase’s filing on Tuesday, Judge Katherine Polk Failla, presiding over the U.S. District Court for the Southern District of New York, will have a comprehensive view of the arguments presented by both parties. The judge, who has shown some skepticism regarding the SEC’s positions, will assess whether Coinbase’s legal stance is unquestionably valid or if there is merit in the SEC’s assertion that the concept of an investment contract extends beyond a traditional, signed agreement. While the possibility of the case being dismissed exists if the judge strongly favors Coinbase’s legal arguments, it’s important to note that having a government enforcement action dismissed at this stage is typically a challenging endeavor.
Read Also: The U.S. Securities and Exchange Commission Clashes with Coinbase Over Crypto Regulations in 2023
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