Coinbase’s lawyers have filed a letter with the court seeking some additional information about the “Investment Contract” that will play a very important role in the battle between Coinbase and SEC.
Coinbase is a popular American crypto exchange. This is a public crypto company and trades under the $COIN index on the Nasdaq exchange. In mid-2023, this exchange was sued by the US Securities and Exchange Commission (SEC) for operating crypto services. The SEC agency has filed multiple charges against this crypto company on behalf of the Securities Act.
On April 13, 2024, Coinbase legal officer Paul Grewal announced that the Coinbase team had filed a letter with the court seeking clarity on the “investment contract.”
Grewal explained that Coinbase is asking the court for permission to file an interim appeal of their case with the SEC. The most important question they want to clarify is whether an “investment contract” must contain something contractual. Coinbase believes so, but the SEC body disagrees.
Essentially, Coinbase is seeking clarification on whether a formal contract is necessary for something to be considered an investment contract in their case.
Grewal said that this letter should be submitted later by Coinbase lawyers, but the decision was made a little earlier because it is a very important matter not only for the Coinbase exchange, but also for the entire crypto sector. After all, the SEC body is taking action beyond the legal authority granted by Congress and placing an unjust cloud over American digital asset innovation.
Furthermore, Coinbase’s legal officer also drew attention to the Ripple vs SEC case in which the SEC lawyers used an “investment contract” as the subject matter for the crypto transactions.
Thus, Grewal believes that legal clarity on the ‘investment contract’ concept will play a crucial role in the legal battle against the SEC body.
Also Read: SEC Body Faces Loss in Govil Loss, Ripple Can Gain Benefit from This Case