Coinbase Prepares to Fight Back: Seeks Dismissal of SEC Lawsuit
Coinbase to challenge SEC lawsuit, asserting it sold no unregistered securities and seeking clear crypto rules.
Coinbase, a cryptocurrency exchange, is planning to ask the court to dismiss a lawsuit by the Securities and Exchange Commission (SEC) on Aug. 4. Paul Grewal, the legal chief at Coinbase, is confident they will win the case.
The SEC took legal action against Coinbase on June 6. The SEC claims that Coinbase sold unregistered securities and acted as an unregistered securities exchange. But Grewal believes otherwise. He plans to request the court on Aug. 4 to dismiss the lawsuit.
Grewal states that Coinbase did not sell securities on its platform. He also believes the SEC has no power over crypto exchanges and had not told Coinbase it needed to register. He mentioned this when the SEC approved Coinbase's registration in April 2021.
The complete arguments by Coinbase will be given to the court and considered by October end.
Grewal said their goal is to achieve clearer rules for crypto from the SEC and the U.S. government.
There have been conflicting views on crypto laws in the U.S., said Grewal. He referred to different opinions from the SEC Chair Gary Gensler and Commodity Futures Trading Commission Chair Rostin Behnam about Ether's legal status.
Grewal pointed out that many laws were made before the internet existed. He believes that the main goal is to get clarity on these laws, which will be a win for them.
