Cryptocurrency exchange Coinbase has filed its first legal response to the SEC’s allegations, saying the allegations “lack all merit.” It also argued that if the SEC’s assertion of regulatory authority over cryptocurrency services was correct, the surveillance action violated “due process rights and constitutes an extraordinary breach of process.”
In early June, the Securities and Exchange Commission filed a lawsuit against Coinbase, alleging that the largest crypto exchange in the United States, operated an unauthorized trading platform and offered unregistered securities. The FCA has also accused Coinbase of running a staking as a service program for digital assets without permission.
However, in 177-page response Coinbase filed in New York District Court yesterday (Wednesday) and said it is not and has never been a stock exchange, broker or clearing agency. It also argued that the cryptocurrencies traded on its platform are outside the SEC’s jurisdiction because they are not ‘investment contracts’ or assets pooled from investors to engage in business and pay dividends to. The exchange confirmed that without this commitment, cryptocurrencies listed on Coinbase are not ‘securities’ but ‘merely selling assets’.
Cryptocurrency exchange Coinbase has filed its first legal response to the SEC’s allegations, saying the allegations “lack all merit.” It also argued that if the SEC’s assertion of regulatory authority over cryptocurrency services was correct, the surveillance action violated “due process rights and constitutes an extraordinary breach of process.”
In early June, the Securities and Exchange Commission filed a lawsuit against Coinbase, alleging that the largest crypto exchange in the United States, operated an unauthorized trading platform and offered unregistered securities. The FCA has also accused Coinbase of running a staking as a service program for digital assets without permission.
However, in 177-page response Coinbase filed in New York District Court yesterday (Wednesday) and said it is not and has never been a stock exchange, broker or clearing agency. It also argued that the cryptocurrencies traded on its platform are outside the SEC’s jurisdiction because they are not ‘investment contracts’ or assets pooled from investors to engage in business and pay dividends to. The exchange confirmed that without this commitment, cryptocurrencies listed on Coinbase are not ‘securities’ but ‘merely selling assets’.
