The case of Coinbase vs. the SEC continues. Now the US Securities and Exchange Commission finds the crypto exchange’s defense contradictory and invalid.
The U.S. Securities and Exchange Commission (SEC) has rejected crypto exchange Coinbase’s defense in the latest lawsuit.
The latter previously claimed to have been unaware of any securities law violations due to the agency’s lack of clarity on crypto regulation.
Moreover, the SEC had given its approval to Coinbase’s business model by approving the 2021 IPO, the crypto company argued.
However, lawyers for the SEC questioned this line of argument, as court documents now show.
Coinbase was accordingly aware of potential violations of U.S. securities laws and even alerted investors to that risk, the SEC said.
The crypto exchange’s own actions would thus invalidate its defense. This goes along with a past assessment by former SEC staffer John Reed Stark.
The SEC’s arguments, meanwhile, are “not particularly strong,” according to legal expert MetaLawMan on Twitter. In its 2021 response, the SEC ignored statements made by its chief executive, Gary Gensler.
At the time, the latter had stated that the Securities and Exchange Commission had no authority to regulate cryptocurrencies and could not present any draft legislation.
The legal expert therefore believes that a victory for the crypto exchange is likely. Further indications of this could become apparent as early as the next preliminary session of the court on July 13.
Image by Sergei Tokmakov, Esq. https://Terms.Law from Pixabay
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