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<p class="is-style-lead">The SEC’s classification of Coinbase-listed cryptocurrencies as securities is an overreach, argues Coinbase in its final attempt to dismiss the lawsuit.</p>
<p>In a <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.599908/gov.uscourts.nysd.599908.83.0.pdf" target="_blank" rel="noopener noreferrer nofollow">filing </a>on Oct. 24 in a New York District Court, Coinbase criticized the Securities and Exchange Commission (SEC) for its broad definition of securities and argued that the listed cryptocurrencies fall outside the regulator’s jurisdiction.</p>
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 <p>“The SEC’s authority is limited to securities transactions. Not every parting of capital with a hope of gain qualifies, and trades over Coinbase are only securities transactions if they involve ‘investment contracts.’ The transactions at issue here do not.”</p> <cite>Coinbase’s statement</cite>
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<p>Coinbase further accused the SEC of undertaking a “radical expansion of its own authority,” claiming that the regulator is attempting to oversee “essentially all investment activity,” a power that only Congress possesses under the major questions doctrine.</p>
<p>You might also like: <a href="https://crypto.news/coinbase-legal-battle-takes-center-stage-crypto-chaos/" rel="noopener noreferrer nofollow"> Coinbase’s legal battle takes center stage in crypto chaos </a></p>
<p>Paul Grewal, Coinbase’s chief legal officer, supported these assertions in an Oct. 24 post, stating that the SEC’s definitions have “no limiting function at all.”</p>
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   <p lang="en" dir="ltr">By arguing that any purchase in which the buyer hopes for an increase in value constitutes an investment contract-and therefore a security-the SEC is attempting a radical expansion of its own authority. Only Congress can do that as the major questions doctrine makes clear. 2/3</p>— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1716915071753048133?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 24, 2023</a>
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<h2 class="wp-block-heading" id="coinbase-vs-sec">Coinbase vs. SEC</h2>
<p>This recent filing by Coinbase is a response to the SEC’s Oct. 3 rebuttal, in which the <a href="https://crypto.news/us-sec-asks-us-judge-to-reject-coinbases-dismissal-motion/" rel="noopener noreferrer nofollow">regulator urged the court</a> to reject Coinbase’s motion for dismissal.</p>
<p>The U.S. watchdog maintains its stance that various cryptocurrencies listed by Coinbase are investment contracts under the Howey test, thereby falling under the regulator’s jurisdiction.</p>
<p>The SEC initially<a href="https://crypto.news/sec-sues-coinbase-just-hours-after-binance/" rel="noopener noreferrer nofollow"> filed a lawsuit</a> against Coinbase on June 6, alleging that the exchange had violated U.S. securities laws by listing several tokens considered to be securities without registering with the regulator.</p>
<p>On June 29, Coinbase <a href="https://crypto.news/coinbase-responds-to-secs-lawsuit-says-some-tokens-are-not-securities/" rel="noopener noreferrer nofollow">submitted a motion</a> for judgment, contending that the SEC is overstepping its authority and infringing upon the exchange’s due process rights.</p>
<p>Judge Katherine Polk Failla, presiding over the matter, could potentially summon both Coinbase and the SEC for oral presentations in court. Following this, she may either render a decision, dismiss the case, or opt for a jury trial.</p>
<p>Read more: <a href="https://crypto.news/coinbase-denies-weekly-5k-withdrawal-limit-on-bitcoin/" rel="noopener noreferrer nofollow"> Coinbase denies weekly $5k withdrawal limit on Bitcoin </a></p>

Coinbase makes final stand against SEC lawsuit

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