Paul Grewal confirmed that the Coinbase team will file a motion against the SEC’s charges to dismiss the case.
Coinbase is a US-based highly compliant crypto platform. Coinbase crypto services are the best choice for private and institutional crypto investors over the services of other companies in the US. In June of this year, the US Securities Exchange Commission (SEC) sued Coinbase for making unregistered securities offerings and operating an illegal national exchange.
On August 3, during Q2 2023 talks, Paul Grewal, Chief Legal Officer of Coinbase said that the company is fully confident that it will win the legal battle against the SEC body.
“As for the lawsuit with the SEC, I want to be very clear. We do think we can win. We expect to win,’ Mr Grewal said.
Grewal confirmed that the Coinbase team will file a motion in court to dismiss all SEC charges and also said that the Coinbase attorneys will provide all the facts to ensure that the Coinbase exchange always perfectly follows the rules. and regulations followed.
According to Coinbase’s Chief Legal Officer, the SEC body has never guided the Coinbase exchange on the rules to follow, nor do they have any authority to regulate the crypto sector.
Coinbase’s representative will provide all these facts in court to dismiss the SEC’s lawsuit.
Furthermore, Grewal confirmed that Coinbase will not only fight against the SEC’s allegations, but will also try to bring clarity to crypto regulations.
According to Grewal, the US financial regulators themselves are incapable of understanding the laws governing the crypto sector as SEC and CFTC have made several statements regarding the nature of the same Crypto asset but opposite to each other.
Lawsuit & Impact
Due to the SEC lawsuit, crypto trading volume on the Coinbase platform fell from $145 billion to $92 billion (from Q1 to Q2).
Coinbase’s trading revenue fell from $375 million to $327 million.
Through its second-quarter earnings report, Coinbase confirmed that the company suffered a net loss of $97 million on $709 million in revenue in the second quarter.
Also Read: SEC Chairman Says AI Sector Is Innovative, Not Crypto