Coinbase is asking a court to dismiss the US Securities and Exchange Commission (SEC) lawsuit against the largest US-based crypto exchange.
In a new thread, Paul Grewal, Chief Legal Officer of Coinbase, say that the crypto company is trying to dismiss the lawsuit because they believe the regulatory body is violating due process.
According to Grewal, the SEC is ignoring a decades-long precedent set by the Supreme Court.
“Today, Coinbase filed our letter asking the court to dismiss the SEC’s case against us. Our core argument is simple: we do not offer “investment contracts” as that term has been interpreted through decades of Supreme Court and other binding (precedents).
By ignoring that precedent, the SEC violated due process, abused its discretion, and reneged on its own previous interpretations of the securities laws. By ignoring that precedent, the SEC has flouted the strict limits of its fundamental authority set by Congress.”
In July, a judge said the SEC could have given Coinbase a warning that it might be in violation of securities laws before approving the company’s application to go public.
The judge also said it made sense for the crypto exchange to believe it was clear since it received no notice from the SEC before giving the go-ahead for its IPO.
A few weeks later, Coinbase was ordered by the SEC to halt all non-Bitcoin (BTC) trading ahead of the lawsuit. According to Coinbase CEO Brian Armstrong, the SEC has considered all digital assets, except BTC, to be securities and will not comment on the legal basis for such a decision.
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