Cryptocurrency exchange, Coinbase has revealed that it plans to move the court to entirely dismiss the SEC lawsuit on August 4. Coinbase chief legal officer Paul Grewal on its second-quarter 2023 earnings call also expressed his confidence in the ultimate victory over the Securities and Exchange Commission.
“With respect to the litigation with the SEC, I want to be very clear. We do think we can win. We expect to win,” Grewal said.
The bold action to file for a dismissal of the SEC lawsuit was uncovered in a recent shareholder letter released on August 3. Coinbase makes this move as part of a broader strategy as it tries to navigate the crypto industry’s unclear regulations.
Recall that on June 6, the regulatory watchdog charged the leading crypto exchange for allegedly offering unregistered securities and also operating an unregistered securities exchange. However, Coinbase will be filing a motion to dismiss the case in its entirety because none of the assets listed in the SEC’s lawsuit constitute investment contracts.
“Coinbase will be filing a motion to dismiss the case in its entirety, in particular, because it is our view that none of the assets or services in the SEC’s complaint constitute investment contracts under longstanding securities law.”
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Furthermore, Paul Grewal stressed that the exchange will argue that it never offered any securities and that the Commission has no jurisdiction over cryptocurrency exchanges. In addition, Coinbase will also argue that the SEC never revealed that there was a requirement for the company to register when it was approved to go public in April 2021.
Coinbase remains committed to regulatory compliance
According to Coinbase, it is still steadfastly committed to regulatory openness and compliance. In order to obtain comprehensive laws safeguarding consumers while promoting growth within the cryptocurrency sector, the group is using a multi-pronged strategy.
Furthermore, the leading crypto exchange is improving its engagement with regulators stressing that the crypto industry is still in its early stage similar to the internet’s earlier days.
Coinbase has until August 4, 2023, to provide its opening arguments and defenses against the SEC’s allegations, according to court filings filed on July 20. After then, the SEC will have until October 3, 2023, to respond to Coinbase’s opening brief.
Coinbase denies SEC’s approach to delisting all crypto assets except Bitcoin
Meanwhile, on July 31, Coinbase CEO, Brian Armstrong in an interview with the Financial Times revealed that the SEC approached the exchange urging it to delist all crypto assets on its platform except Bitcoin.
However, the crypto exchange has denied that the SEC made such a demand. In a statement on August 1, the exchange stated categorically that,
“Prior to litigation, the SEC did not at any point request that Coinbase delist any specific assets … The interview as published earlier today by the Financial Times omits important context regarding our conversations with the SEC.”
The SEC has also denied that it asked the exchange to delist any specific asset.
