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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 <a rel="noopener noreferrer nofollow" title="final" href="https://thebittimes.com/tag/final.html">final</a> attempt to dismiss the <a rel="noopener noreferrer nofollow" title="lawsuit" href="https://thebittimes.com/tag/lawsuit.html">lawsuit</a>.</p>
 <p>In a filing 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>
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 <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 <a rel="noopener noreferrer nofollow" title="makes" href="https://thebittimes.com/tag/makes.html">makes</a> clear. 2/3</p>— paulgrewal.eth (@iampaulgrewal) October 24, 2023
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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 regulator urged the court 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 filed a <a rel="noopener noreferrer nofollow" title="lawsuit" href="https://thebittimes.com/tag/lawsuit.html">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 submitted a motion 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>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Coinbase denies weekly $5k withdrawal limit on Bitcoin
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/coinbase-makes-final-stand-against-sec-lawsuit-tbt67727.html">https://thebittimes.com/coinbase-makes-final-stand-against-sec-lawsuit-tbt67727.html</a></p>

Coinbase makes final stand against SEC lawsuit

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