In its defense of Coinbase, which opened a new hearing date in July, the exchange noted that many of the tokens the SEC highlighted in its complaint are outside the commission’s jurisdiction.

The long-awaited legal battle between cryptocurrency exchange Coinbase (NASDAQ:COIN) and the US Securities and Exchange Commission (SEC) is set to take place on July 13th. Coinbase is just one of several cryptocurrency companies under the watch of US financial regulators.Committee claim The exchange operates a crypto asset trading platform as an unregistered domestic stock exchange, broker or clearing house. It also accused the company of not registering a staking-as-a-service program. The charges date back to 2019 and allege Coinbase illegally generated profits.

SEC and Coinbase Lawsuit Decided on July 13th

The date was moved to July in accordance with the exchange’s defense strategy of submitting first responses 40 days before the August 7 deadline. Coinbase deployed “creative” defensive tactics that resulted in a trial with the US SEC in July.

According to the rules, the SEC must submit a response to Coinbase in accordance with the cryptocurrency company’s strategic defenses. A response date was set for July 3, but the watchdog called for a drastic response in light of the Independence Day holiday on July 4. The court granted the request. In addition, the pre-trial conference, originally scheduled for August 24th, will be held on July 1st. At the pre-filing meeting, the presiding judge and attorneys meet to assess the steps necessary to move the case to trial. Also pin dates for certain tasks.

in the coinbase defense That prompted a new hearing date for July, but the exchange noted that many of the tokens the SEC highlighted in its complaint are outside the commission’s jurisdiction. A lawyer for the company wrote:

“Coinbase responded to the SEC complaint with a number of defenses, including that its conduct violated due process and amounted to abuse of discretion. became aware of two years ago, and the issue now gives Coinbase the right to rule on arguments: the subject matter is outside the SEC’s jurisdiction.”

coinbase defense

The exchange further argued that regulators can only go further if the transactions in digital assets and services pointed out in the complaint are considered “investment contracts.” This means that it is a “securities” under the securities and trading laws. Coinbase added:

“The claim must be dismissed because legally none apply.”

Metalorman, a lawyer and Twitter legal commentator, likened the exchange’s 40-day response tactic to typical “creative strategy.” “Coinbase appears to be using this creative strategy to obtain documents that serve its purpose before a judge through Answer,” he explained.

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Ibkun Ogundare

Ibukun is a cryptocurrency/finance writer interested in communicating relevant information using uncomplicated language to reach all kinds of audiences. Besides writing, he likes watching movies, cooking and exploring restaurants in Lagos City where he lives.

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