The U.S. Securities and Exchange Commission (SEC) has asked a federal judge to deny Coinbase’s motion to dismiss a high-profile lawsuit alleging the exchange improperly offered unregistered securities.
Coinbase previously contended the SEC abused its discretion. The exchange says the SEC exceeded its authority in bringing charges against the platform for dealing in crypto assets not registered as securities. However, the agency asserts it acted firmly within its jurisdiction in targeting alleged securities law violations.
Coinbase-SEC case has broad implications
The closely watched case holds broad implications for the legal status of cryptocurrencies and the SEC’s scope of oversight. The crypto community is monitoring the outcome for precedent on the commission’s regulatory reach regarding digital asset platforms.
Under Chair Gary Gensler, the SEC has taken the stance that most cryptocurrencies qualify as securities subject to its investor protection rules. However, the exchange argues that many assets don’t fall under the securities title and lie beyond the SEC’s purview.
While the SEC’s scrutiny of the cryptocurrency realm continues, the outcome of the Coinbase-SEC lawsuit will prove to be a pivotal moment for the crypto community.