Coinbase has announced its intention to seek dismissal of the lawsuit filed by the Securities and Exchange Commission (SEC) on August 4.
The crypto exchange’s Chief Legal Officer, Paul Grewal, expressed confidence during the second-quarter 2023 earnings call held on August 3, stating that they expect to prevail in the court case initiated by the regulator.
In the lawsuit filed on June 6, the SEC accused Coinbase of selling unregistered securities and operating as an unregistered securities exchange. In response, Coinbase plans to submit a motion requesting the court to dismiss the lawsuit entirely on August 4.
Grewal emphasized that Coinbase will argue against the SEC’s allegations, stating that the exchange did not list securities on its platform. Additionally, they contend that the SEC lacks regulatory authority over crypto exchanges and had not indicated any registration requirement when Coinbase’s registration statement was declared effective in April 2021.
Coinbase expects the court to consider their arguments, presented in a comprehensive brief, by the end of October.
Beyond the litigation, Grewal emphasized that Coinbase’s overall objective in engaging with the SEC and the U.S. government is to attain regulatory clarity. The current ambiguity in the legal landscape regarding cryptocurrency regulations, exemplified by conflicting statements from SEC Chair Gary Gensler and Commodity Futures Trading Commission Chair Rostin Behnam on the legal status of Ether, underscores the importance of clarifying regulatory guidelines in the U.S.