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Coinbase Seeks Dismissal of SEC Lawsuit, Is XRP-Like Win in View?

Fri, 08/04/2023 - 14:16
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Godfrey Benjamin
Coinbase has officially filed motion to dismiss SEC's security suit
Coinbase Seeks Dismissal of SEC Lawsuit, Is XRP-Like Win in View?
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According to media speculations from earlier this week, renowned digital currency trading platform Coinbase Global inc has filed a new motion as it seeks to quash the securities lawsuit brought on by the United States Securities and Exchange Commission (SEC). 

Coinbase to Make Major Move in SEC Lawsuit, Here It Is

The company’s chief legal officer (CLO) Paul Grewal revealed this filing through his official Twitter handle and noted that the firm does not offer 'investment contracts,' as alleged by the regulator.

Abiding by bold claims 

The Coinbase legal brawl with the SEC is one of many enforcement actions that have been initiated by the latter thus far this year as the regulator seeks to stamp out every form of investment contract being offered by crypto firms operating in the United States.

While its approach has stirred mixed reactions, Grewal categorically stated that the SEC has ignored a very crucial precedent in which the Supreme Court has construed over the years what binds an agreement to be an investment contract. By ignoring this precedent, Grewal said the market regulator:

...has violated due process, abused its discretion, and abandoned its own earlier interpretations of the securities laws. By ignoring that precedent, the SEC has trampled the strict boundaries on its basic authority set by Congress.

The trading platform has always been confident in its ability to win the securities lawsuit brought on by the SEC, and this filing for dismissal is yet another proactive way it is going on the offensive.

Coinbase Market Share in US Rises to 61% Despite SEC Lawsuit

XRP-like win underway?

Just a few weeks ago, blockchain payments firm Ripple Labs Inc scored a crucial win against the SEC as Judge Analisa Torres declared that XRP is not in itself a security. With the SEC's wounds still fresh, there is now ongoing speculation that Coinbase may be able to pull off a related win, given how its lawsuit is currently shaping up.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.