SEC Bench Rejects Coinbase Securities Claims in New Filing
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The U.S. Securities and Exchange Commission (SEC) recently obtain Much-needed support from the North American Securities Administrators Association (NASAA). NASAA is currently acting as a tribunal in a legal battle with top cryptocurrency exchange Coinbase Global.
The group voiced its support, arguing that digital assets, which are at the heart of regulatory action, should not be treated “specially in any way.” The agency also argues that the enforcement action should not be considered “new or unusual” as it relates to digital currency trading platforms.
At the heart of the SEC and Coinbase’s dispute are allegations that Coinbase supports a list of digital currencies that are considered unregistered securities. Tokens labeled by regulators include, but are not limited to, Cardano (ADA), Solana (SOL), and Filecoin (FIL).
In its support to the SEC, NASAA stated that there should be no preferential treatment as far as securities laws are concerned.
“The SEC’s position on this matter is consistent with the SEC’s long-standing public position.” […] This is also within established law,” says the group’s general counsel.
hot counter attack
Notably, Coinbase is not alone in battling the US SEC regarding this particular claim, as Binance is also facing related legal stress. However, Coinbase filed a motion to dismiss the case (MTD), citing overreach by the Commission in defining securities.
Judge Annalisa Torres’ July 13 ruling in Ripple Labs v. SEC provides a good precedent to focus on, giving Coinbase grounds to ask the court to dismiss the case. Specifically, the SEC noted that programmatic coin sales in the secondary market do not constitute securities.
Coinbase is not responsible for any crimes charged by regulators as it is a secondary market where ADA, FIL, SOL, etc. are traded.
About the author
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate others about the possibilities of Web 3.0. As a former banker, his love for crypto was born when he discovered the clear advantages of decentralized money compared to traditional payments. With extensive experience covering various aspects of Web3, Godfrey’s articles have been featured in Blockchain.News, CryptoNews, CoinGap, and more.