Coinbase SEC case updates: Coinbase, an American cryptocurrency exchange, will argue against the SEC’s lawsuit filed in June 2023. The case is running against Coinbase operating its proof-of-stake mechanisms as an unregistered national security exchange or broker. According to them, Coinbase trades some crypto tokens without registering them with the National Securities Exchange. Several controversies against the company led to an impact on its performance initially. However, Coinbase has a solid argument against it. Other Crypto exchange companies agree with it. Keep reading to figure out Coinbase’s answer to the SEC’s lawsuit.
Coinbase SEC Case Taking New Routes: Coinbase Wants SEC To Drop The Case
Coinbase is in controversy after the SEC filed a lawsuit against it. The Company receives claims to be running the exchange unregistered, offering trade of some cryptocurrency tokens without its registration with the National Securities Exchange. Coinbase mentions that crypto assets and share market assets like stocks and bonds are not one thing. They have differences. SEC is overperforming its authority and rights. The company gets support from other leaders in the crypto industry as well.
The controversy has been running since the last summer. The hearing will take place on Wednesday in Federal court. Coinbase is one of the largest crypto exchanges in the world. They practice the proof-of-stake to earn a commission. The company involves the staking mechanism to stake the crypto assets of the crypto holder and performs the transactions based on it. The customers involving their crypto assets in the staking get some rewards. However, Coinbase did not register it with the Securities Exchange Board. Much information remains out of SEC’s knowledge.
Coinbase SEC Case Comes Up With Examples From Previous Cases
Coinbase didn’t consider the crypto tokens to be the same as the stocks and bonds. They created their defense by mentioning a similar old case where Ripple Labs XRP Crypto coin won the case against the Securities Exchange. To counter them, SEC presents another case where Terraform Labs lost the case for a similar action. Coinbase is not the only crypto exchange going through such difficulties. Many other firms are facing the consequences. Exchanges like Binance and Kucoin have been banned in many countries. Recently, India also banned nine exchanges that are said to be illegal.
The case will proceed with further hearings. However, nothing is final till the final verdict. Securities and Exchange Commission is a regulatory body of the United States government. Its task is to protect traders from illegal activities and fraud. SEC’s claims also point out involving the public in their activities, which is unlawful.
Coinbase has a massive community of crypto traders believing in its services. However, certain negative reviews started popping out after the controversy. Some of the customers share their bad experiences with the customer service. However, the final verdict will reveal the truth. Coinbase gets the support of other trading firms in the controversy. For more reference, visit sec.gov. Keep reading more such news on Charchatimes.
