Coinbase, the prominent cryptocurrency exchange, is preparing to file an order to dismiss the Securities and Exchange Commission’s (SEC) lawsuit on August 4th, with the exchange’s Chief Legal Officer, Paul Grewal, expressing unwavering confidence in their ability to win the case.
During Coinbase’s second-quarter 2023 earnings call on August 3rd, Grewal asserted that the exchange firmly believes in its victory over the regulatory body. He emphasised, “With respect to the litigation with the SEC, I want to be very clear. We do think we can win. We expect to win.”
The SEC filed the lawsuit against Coinbase on June 6, alleging the sale of unregistered securities and operating as an unregistered securities exchange. Coinbase will present a motion to dismiss the lawsuit, arguing that the exchange did not list securities on its platform.
6/13/23, Ltr to the 3d Circuit: “The Commission has not yet decided what action to take on that petition.”
Today: “We can get to crypto later.”
Is there any serious question that a decision was made to deny sensible rules but deliberately withheld from the public?…
— paulgrewal.eth (@iampaulgrewal) August 3, 2023
Furthermore, they will contend that the SEC lacks regulatory authority over crypto exchanges and never required Coinbase to register when its registration statement was declared effective in April 2021.
Grewal anticipates that the comprehensive arguments, set to be submitted soon, will be considered by the court at the end of October. He stated, “Our goal across not just the litigation, but all of our efforts engaging with the SEC and the U.S. government as a whole is to achieve regulatory clarity.”
Pursuing clarity in cryptocurrency regulation becomes increasingly crucial as conflicting messages about the legal status of digital assets persist. Grewal cited the contrasting statements from SEC Chair Gary Gensler and Commodity Futures Trading Commission Chair Rostin Behnam on the Ether (ETH) classification as an example. Behnam previously considered ETH a commodity, while Gensler asserted that all cryptocurrencies except Bitcoin are securities.
Amidst a legal landscape shaped by laws drafted long before the advent of the internet, Coinbase remains steadfast in its commitment to achieving regulatory clarity. Regardless of the outcome of any specific motion or court case, the ultimate victory for Coinbase lies in attaining the much-needed clarity in cryptocurrency regulation.
