The U.S. Securities and Exchange Commission (SEC) argued that Coinbase’s steps to drop the ongoing lawsuit should be dismissed.
SEC on ongoing Coinbase case Tuesday, October 3 He made an official statement on the day. To drop the lawsuit the regulator filed against Coinbase in early June 4 August to the stock exchange that applied to the court on response net happened. SEC, the case Rejection of request for dismissal He argued that it should.
SEC, which opened the case in question at the beginning of June, filed a lawsuit against Coinbase. unregistered brokerage firm He accused him of operating as. In its statement to the trial judge, the regulatory body stated that the most critical determining factor for the case was Howey Test will happen and the result of this test will be reference for decision He emphasized that it could happen.
to Coinbase, Ripple (XRP) out of the case “Publicly sold XRP is not within the scope of securities” regulator stating that one should not rely on the decision organisation, in a similar case Terra (LUNA) He pointed out the contrary decision given for .
The SEC has ruled out the Howey Test, which has been used for decades to distinguish whether an asset is a security, for the Coinbase case. knot solver He emphasized that it will happen with the following statements:
This lawsuit can’t really come as a surprise to Coinbase. Coinbase knew from the beginning that a crypto asset traded on its trading platform was a security if it met the Howey test.
In addition to this statement, the regulatory agency stated that Coinbase permission to open to the public that the products offered by the cryptocurrency exchange are not securities. does not represent an automatic decision defended.
About subject in the statement chief legal officer of Coinbase Paul Grewalemphasized that the SEC kept saying the same thing over and over again, but the products offered by Coinbase were not within the scope of securities:
The assets we list on our platform are not securities and do not fall within the jurisdiction of the SEC. The court decisions given in the past period clearly demonstrated this.
According to the SEC’s application result, it is thought that the next step will be to squeeze Coinbase even more.
The argument put forward by Coinbase during the lawsuit is that the Howey Test may be valid for institutional sales, but their own to individual users It was stated that it provided services for