The Coinbase cryptocurrency platform He asked a judge this Friday to dismiss the lawsuit against him from the Securities and Exchange Commission (SEC), since he maintains that he does not trade in securities, which would invalidate the arguments of the commission.
In June, the SEC sued Coinbase for operating as an unregistered stock exchange and broker-dealer.
He also accused the company of selling unregistered securities through its staking-as-a-service program, which rewards users with cryptocurrency.
However, Coinbase rejects the SEC’s arguments, arguing that the case “falls outside the agency’s delegated authority.”
The company’s legal director, Paul Grewal, wrote today on his social networks: “Our central argument is simple: we do not offer ‘investment contracts’ as that term has been interpreted for decades in the Supreme Court“.
“By ignoring that precedent, the SEC violated due process, abused its discretion, and abandoned its own prior interpretations of securities laws. By ignoring that precedent, the SEC has trampled hard limits on its basic authority set by Congress,” Grewal added.