The North American Securities Administrators Association (NASAA) has expressed support for the U.S. Securities and Exchange Commission (SEC) in its legal actions against Coinbase. NASAA argues that while cryptocurrencies themselves are not inherently fraudulent, the industry has attracted fraudsters who take advantage of investors’ fear of missing out and their economic situations. NASAA believes that the SEC’s claim that Coinbase violated securities law is consistent with the agency’s stance on the industry and should not be considered “novel or extraordinary.” NASAA urges the court to reject Coinbase’s argument against the SEC’s interpretation of securities law. NASAA also criticizes Coinbase’s interpretation of the Howey Test, a legal benchmark used to determine if a transaction qualifies as an investment contract. Coinbase argues that the test requires formal contractual undertakings and direct sharing of profits, income, or assets, but NASAA disagrees, stating that these elements are not required to find an investment contract. The SEC filed its case against Coinbase in June, alleging violations of federal securities law, but Coinbase is fighting to have the case dismissed with support from Senator Cynthia Lummis and other lawmakers.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇨🇦 🇲🇽 |
| Sentiment | neutral |
| Relevance Score | 0 |
| People | None |
| Companies | Coinbase, Securities and Exchange Commission (SEC), U.S. Securities and Exchange Commission (SEC), Howey Test, North American Securities Administrators Association (NASAA) |
| Currencies | None |
| Securities | None |
