After SEC filed a lawsuit against Coinbase for alleged unregistered securities trading, the exchange swiftly responded to the SEC’s complaint and requested the court to dismiss the lawsuit, stating:
SEC has failed to demonstrate that the mentioned tokens in the lawsuit are actually securities. Therefore, there is no basis for the SEC’s accusation of securities trading against Coinbase. Additionally, Coinbase declares that the SEC should sue these projects and win before they file a lawsuit against Coinbase.
Even if SEC proves that the tokens mentioned in the lawsuit are securities, the lawsuit would still be dismissed because SEC filed it before obtaining that truth. Essentially, Coinbase aims to win on technical grounds.
Currently, Congress is in the process of drafting crypto legislation, and the SEC has not been granted regulatory authority over this industry. Therefore, the SEC is acting beyond its jurisdiction. The SEC is not enforcing the law, but rather they intend to write the law.
Furthermore, Coinbase asserts that it has made efforts to comply with necessary regulations and guidelines, but the SEC has failed to meet them halfway. However, this argument is not new and even serves as the basis for Coinbase’s counter lawsuit against the SEC.
With Coinbase’s strong and aggressive response to the SEC, the exchange is currently in an attacking mode, similar to Binance. This implicitly signals to the SEC that they are prepared to fight, regardless of how the judge may rule.