Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
SEC Challenges Motion to Dismiss Coinbase Lawsuit, XRP Attorney Increases Winning Chances to 50%
In a predictable action, the SEC submitted a motion to contest Coinbase’s motion to dismiss the case on Oct. 3. “It’s more of the same old same old,” remarked the exchange’s chief legal officer, Paul Grewal.
The SEC initiated legal proceedings against Coinbase in June, just a day after targeting Binance. It accused the company of offering unregistered securities and an unregistered staking service.
However, Grewal asserted that the agency lacks a basis for these allegations since crypto assets have not been officially classified as securities by Congress.
“Repeatedly, the SEC makes broad assertions about what the law is or should be without any legal citation.”
A Predictable Response
Coinbase submitted a motion to dismiss the complaint on August 4, contending that the Commission had breached due process and misused its authority.
The SEC’s reply was anticipated as it reiterated the same arguments that crypto assets are securities, akin to corporate stocks. Grewal stated:
“The assets we list on our platform are not securities and fall outside the SEC’s jurisdiction. Recent court rulings have clarified this.”
He further noted that under the SEC’s assertions, “everything from Pokémon cards to stamps to Swiftie bracelets are also securities,” yet this does not reflect the law.
Related Posts
In late September, SEC chair Gary Gensler faced questions from New York Representative Ritchie Torres during a U.S. House Committee on Financial Services meeting.
When queried about a physical Pokémon card, Gensler stated it does not meet the criteria for a security. However, his response became unclear when Torres mentioned NFT tokenized Pokémon cards.
Crypto attorney John E. Deaton remarked:
“After reviewing the SEC Opposition, the odds have shifted in Coinbase’s favor and stand, at least, at 50%.”
Ignoring American People
Grewal indicated that the SEC’s stringent oversight of the sector overlooks a significant portion of the population that has invested in crypto and could incur losses due to the ongoing litigation against the industry.
“The SEC’s persistent regulation by enforcement approach also disregards the voice of the 52-million strong crypto constituency in the US that seeks rules and regulations for this innovative technology.”
Coinbase is set to file their response to the SEC on October 24.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
