The US Securities and Exchange Commission (SEC) has urged a federal judge to reject Coinbase’s motion to dismiss the regulator’s lawsuit against the prominent cryptocurrency exchange. The SEC is attempting to leverage the Terraform Labs ruling to raise questions about the court’s decision in the Ripple case, which was widely celebrated by the crypto industry. In June, the SEC initially sued Coinbase, alleging that the exchange operated unlawfully as a national securities exchange, broker, and clearing agency without proper registration. Coinbase sought the dismissal of the case in August, contending that the digital assets and services in question did not meet the criteria for securities. The SEC argued that apart from the Wallet application, Coinbase did not dispute its role as an exchange, broker, and clearing agency. The agency also claimed that the firm has been aware that its selling cryptocurrencies may qualify as securities under the Howey test, as evident from its filings with the SEC. Coinbase’s Chief Legal Officer, Paul Grewal, responded to the SEC’s filing, dismissing it as “more of the same old same old.” Grewal further asserted that the SEC’s arguments imply that other items, such as Pokemon cards, stamps, and Swiftie bracelets, could be deemed securities. He maintained that the assets listed on Coinbase’s platform are not securities and fall outside the SEC’s jurisdiction. Grewal criticized the SEC’s enforcement-focused regulatory approach, which he believes disregards the opinions of the expansive 52-million-strong crypto community in the United States. The outcome of the case will likely have far-reaching implications for the industry, influencing how digital asset platforms operate and comply with securities laws.

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Information	Details
Geography	North America
Countries	🇺🇸 🇯🇵
Sentiment	neutral
Relevance Score	8
People	Paul Grewal
Companies	SEC, US Securities and Exchange Commission, Coinbase, Terraform Labs, Ripple Labs
Currencies	Ethereum, XRP, Bitcoin, LABS Protocol, Coinbase Wrapped Staked ETH
Securities	None