United

Test

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The regulatory body has petitioned a federal <a rel="noopener noreferrer nofollow" title="Judge" href="https://thebittimes.com/tag/judge.html">Judge</a> to reject Coinbase’s plea for <a rel="noopener noreferrer nofollow" title="dismiss" href="https://thebittimes.com/tag/dismiss.html">dismiss</a>al in its lawsuit, contending that the cryptocurrency platform was aware that the digital assets it offered were classified as <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities according to the Howey test. The United States Securities and Exchange Commission (<a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>) has submitted a filing to a federal <a rel="noopener noreferrer nofollow" title="Judge" href="https://thebittimes.com/tag/judge.html">Judge</a>, opposing Coinbase’s <a rel="noopener noreferrer nofollow" title="request" href="https://thebittimes.com/tag/request.html">request</a> for the <a rel="noopener noreferrer nofollow" title="dismiss" href="https://thebittimes.com/tag/dismiss.html">dismiss</a>al of the regulator’s lawsuit. In a filing dated October 3rd, filed in a New York District Court, the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a> responded to Coinbase’s motion to <a rel="noopener noreferrer nofollow" title="dismiss" href="https://thebittimes.com/tag/dismiss.html">dismiss</a> and reiterated its belief that certain cryptocurrencies listed on the platform qualify as investment contracts under the Howey Test and are thus subject to <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a> registration. “The issuer of each cryptocurrency actively encouraged investors, including those on Coinbase’s platform, to reasonably expect an increase in the value of their investments based on the widely disseminated plan to develop and sustain the asset’s value,” stated the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>. The <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a> alleged that Coinbase has been aware from the outset that cryptocurrencies it offers may be considered <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities if they meet the Howey Test, and it claimed that Coinbase acknowledged this in its submissions to the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>. The regulator also refuted Coinbase’s argument invoking the “major questions doctrine,” which asserted that the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a> lacks authority over the cryptocurrency market until Congress explicitly grants it. “The <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a> has not assumed any new authority beyond what the federal <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities laws already explicitly authorize it to do,” asserted the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>. In an October 3rd tweet, Coinbase’s Chief Legal Officer, Paul Grewal, characterized the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>’s arguments as “more of the same old, same old” and insisted that the assets listed on the platform “are not <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities and fall outside the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>’s jurisdiction.” Grewal argued that the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>’s response would imply that “everything from Pokémon cards to stamps to Swiftie bracelets” could also be classified as <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities. Miles Jennings, General Counsel for a16z Crypto, claimed in a subsequent post that the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>’s motion “has numerous flaws.” Jennings further contended that even if the court were to accept the regulator’s primary argument concerning investment contracts, the case “should still be <a rel="noopener noreferrer nofollow" title="dismiss" href="https://thebittimes.com/tag/dismiss.html">dismiss</a>ed,” as he believed the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>’s definition of an investment contract was “excessively broad.”
The post SEC requests that the judge deny Coinbase’s litigation dismissal application. appeared first on BitcoinWorld.
Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/sec-requests-that-the-judge-deny-coinbase-s-litigation-dismissal-application-tbt65175.html">https://thebittimes.com/sec-requests-that-the-judge-deny-coinbase-s-litigation-dismissal-application-tbt65175.html</a>

SEC requests that the judge deny Coinbase’s litigation dismissal application.

TheBitTimes

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