Coinbase was aware that it had violated US investment laws, the SEC claims

Coinbase was aware that it had violated US investment laws, the SEC claims

The US stock exchange supervisory authority (Securities and Exchange Commission) has published an answer to the recent submission of Coinbase in which it claimed that the stock exchange has made a "calculated decision" to act as a non-registered securities mediator.

The company already requested the dismissal of the Sec.

• The authority initiated a comprehensive legal proceedings against two giants of the crypto industry at the beginning of June by submitting successive lawsuits against Binance (and its US subsidiary) and Coinbase.
• the latter reacted quickly and submitted an application to dismiss all charges just a few weeks after the lawsuit.
• In it, the stock exchange argued that the SEC had already given its business model to its business model in 2021 when it allowed Coinbase to become a listed company.
• The company has repeatedly confirmed its attempts to open positive regulatory dialogues with the US supervisory authorities, but so far without success. It even asked the SEC to create more clarity about its regulatory guidelines for cryptocurrencies, but the authority has not yet reacted.
• , however, the SEC reacted to reject the indictment on Friday, July 7, on the request of Coinbase. The file states that "Coinbase's own actions refute their argument", "that the company was not aware that its behavior was a violation of the federal laws".
• The Commission continues to claim that the stock exchange has "repeated" its shareholders since its listing at the Nasdaq that "the crypto assets traded on their platform could be considered securities and that their behavior could therefore violate the federal securities laws-also in the." Exactly this registration declaration is now used as proof that the SEC has supposedly blessed its behavior. ”
• In the file, it also says that Coinbase has decided to ignore "more than 75 years of controlling law under Howey", and put two "incorrect arguments" in his application for discharge:

"(1) An investment contract must be a formal common LAW contract or contain it, or (2) Even if a crypto-asset is considered an investment contract during the first offer and sale by an issuer, the same asset cannot be an investment." Contract if he is traded between non-issuers on a platform like that of Coinbase, since secondary market transactions in which the issuer is not involved are only "sales of assets". Both arguments are wrong, ”said the Sec.

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