Cryptos On Coinbase Fall Outside SEC Jurisdiction, Says Exchange In Response To Lawsuit
Coinbase, the largest U.S.-based digital asset exchange, has fired back at the U.S. Securities and Exchange Commission (SEC) in a court filing, stating that the regulator lacks the jurisdiction to institute an enforcement action against the exchange....
- Coinbase has responded to the U.S. Securities and Exchange Commission (SEC) in a court filing, arguing that the regulator lacks jurisdiction to take enforcement action against the exchange.
- The SEC had accused Coinbase of listing unregistered securities on its platform.
- Coinbase denies the claims, stating that the virtual currencies listed on its platform do not meet the requirements of "investment contracts" under the Howey test.
- The exchange also argues that the SEC failed to provide regulatory direction despite multiple requests.
- Coinbase claims that the SEC's actions violate its due process rights and constitute an abuse of process.
- The SEC has been taking increased regulatory action against the virtual assets industry, leading to enforcement actions against other players such as Kraken and Bittrex.
- Coinbase CEO, Brian Armstrong, sees the situation as an opportunity for the industry to gain regulatory clarity.
The sentiment of the article is mostly negative towards the SEC's actions, with Coinbase defending itself and criticizing the regulator's approach. However, there is a positive sentiment towards the potential for the industry to gain regulatory clarity.