Coinbase moves to dismiss SEC charges, describes it as an ‘extraordinary abuse of process’

Crypto speech Coinbase has filed a question to disregard the U.S. Securities and Exchange Commission’s (SEC) lawsuit against it, describing it arsenic an “extraordinary maltreatment of process,” according to a June 28 filing.

SEC’s “about-face”

Coinbase argued successful its filing that the SEC’s suit stems from a displacement successful the regulator’s attack to the cryptocurrency industry.

According to the exchange, the fiscal regulator had approved its determination to spell nationalist successful April 2021 without suggesting that it indispensable registry its operations, nor did it classify immoderate of its listed assets arsenic securities astatine that time.

Coinbase noted the SEC Chairman Gary Gensler’s grounds earlier Congress successful May 2021, wherever helium allegedly acknowledged that the Commission lacked the statutory authorization to modulate businesses specified arsenic Coinbase.

The speech emphasized that according to their interpretation, Gensler specifically stated that lone Congress had the powerfulness to code the regulatory gaps successful the cognition of cryptocurrency exchanges.

Coinbase claimed successful its filing that the SEC altered its stance wrong 2 years “by decree, arbitrarily, and without legislature mandate,” confusing marketplace participants with its unexpected about-face.

Deny securities allegations

In the filing, Coinbase unequivocally stated that it does not database securities and nor does its staking work represent a securities product.

Coinbase disclosed that retired of the 12 crypto assets categorized arsenic securities by the SEC, it had listed six earlier its 2021 nationalist listing – and that the fiscal regulator failed to classify these assets arsenic securities astatine the time. Coinbase is of the presumption that:

“None of the assets the SEC has present identified are successful information securities, and for that and different reasons, secondary transactions successful those assets are besides not securities.”

Furthermore, the speech stated that the fees it earns for its staking services are for medication and IT services, not managerial expertise oregon effort, arsenic determination is nary “investment contract.” It added that the steadfast does not find staking rewards.

“Coinbase denies that its staking services represent a security, that its staking services interruption the U.S. securities laws successful immoderate way, oregon that it has deprived customers of immoderate worldly accusation concerning those services.”

Coinbase wants the lawsuit dismissed

In its filing, Coinbase asks the tribunal to disregard the SEC’s charges with prejudice and assistance judgement successful its favour connected each claims.

“SEC’s claims deficiency each merit. Its still-evolving ineligible presumption rests connected a novel, atextual, and acontextual operation of the connection “investment contract” successful the national securities statutes that runs straight contrary to SEC officials’ nationalist admissions astir the limits of their agency’s statutory authority.”

The word “with prejudice” refers to a lawsuit being dismissed permanently.

The station Coinbase moves to disregard SEC charges, describes it arsenic an ‘extraordinary maltreatment of process’ appeared archetypal connected CryptoSlate.