Coinbase Files Motion to Dismiss SEC, Calls Claims Beyond Existing Law

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Coinbase Files Motion to Dismiss SEC, Calls Claims Beyond Existing Law
  • Coinbase fights back against SEC’s lawsuit.
  • Coinbase filed for dismissal and argued that SEC claims exceeded the legal limit.
  • Coinbase’s Chief Legal Officer emphasizes Coinbase’s commitment to dialogue.

Coinbase, one of the leading crypto exchanges in the United States, has launched a strong counterattack against the U.S. Securities and Exchange Commission (SEC) by filing an answer and notice of intent to file a motion to dismiss the SEC’s case. 

In a tweet, Paul Grewal, the Chief Legal Officer of Coinbase, expressed the company’s belief that the claims made by the SEC in the lawsuit go beyond the existing law and should be dismissed.

Grewal’s tweet conveyed Coinbase’s commitment to dialogue with regulators, including the SEC. It highlighted its belief that new legislation and rulemaking are appropriate for regulating the industry. 

Notably, this recent filing comes barely after two weeks when Coinbase filed a suit, seeking redress from the court, as Coin Edition reported.

However, Coinbase firmly asserted that the claims brought against them in this particular case overstep the boundaries of the current legal framework, with the crypto community commenting on the matter.

Brad Nickel, a prominent crypto influencer, commended Coinbase’s filing for dismissal. Nickel admired the clarity and eloquence of the legal arguments presented in Coinbase’s response, suggesting that even those unfamiliar with legal documents could easily comprehend its content. He urged others to read the filing, emphasizing that Coinbase is not taking the matter lightly.

Nickel pointed out critical arguments made by Coinbase in their filing, asserting that the assets in question were not securities from the beginning and did not meet the standard of an investment contract. 

Moreover, Nickel criticized SEC Chairman Gary Gensler, highlighting his previous statement from 2021, where he acknowledged the lack of authority unless Congress acts while noting that Congress has not taken any action.