“SEC violated procedural safeguards”

Cryptocurrency exchange US-based Coinbase filed a motion to dismiss the lawsuit filed by the Securities and Exchange Commission (SEC) in June.

In an Aug. 4 filing in the U.S. District Court for the Southern District of New York, attorneys for Coinbase filed a motion for a ruling, arguing that the SEC “violated due process, abused its discretion, and retracted its prior interpretations of the securities.” laws”, asserting some regulatory powers in relation to the cryptocurrency exchange. The legal team cited precedent from the SEC v. Ripple case in which a judge ruled that the XRP token largely failed to qualify as a security under the commission’s existing rules.

Specifically, In a summary, Coinbase disputed that the 12 token transactions under consideration in the SEC case met the definition of “investment contracts” under the Howey test, and that the exchange operated as an unregistered broker, claiming that the Commission’s challenge to its staking program “failed.” in law”. The cryptocurrency company asked the court to dismiss the case, arguing that the SEC’s enforcement actions were “punitive” and constituted an excess of the powers granted to it by Congress.

By ignoring this precedent, the SEC violated due process, abused its leeway, and abandoned its previous interpretations of securities laws. By ignoring this precedent, the SEC violated the strict limits of its core powers established by Congress. 23

The SEC filed a lawsuit against Coinbase on June 6, about three months after the exchange received the Wells notice from the federal regulator.. The company has consistently denied SEC allegations that its activities may violate securities laws, announcing on August 3 during an earnings call that it will file a motion to dismiss.

In addition to Coinbase, the SEC has sued Binance and Hex founder Richard Hart. US lawmakers recently passed legislation that could change the commission’s power structure over digital assets if it becomes law.

Clarification: The information and/or opinions expressed in this article do not necessarily reflect the views or editorial line of Cointelegraph. The information presented here should not be taken as financial or investment advice. All investments and commercial movement involve risk and it is the responsibility of each individual to conduct proper research before making an investment decision.

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not intended or available to investors in Spain.

Source link

About Ankur Jain

I'm Ankur Jain, and I'm thrilled to be part of the suboonews.xyz team as an editor. I call India my home, and I have a passion for crafting engaging and well-written articles. With a solid background of 7 years in this field, I bring a wealth of experience to my work. It's my pleasure to contribute to the informative and captivating content you'll find on suboonews.xyz. Stay tuned for some exciting stories and news pieces coming your way!

Check Also

Will these 4 cryptocurrencies record sharp drops in August?

While July began with a crypto bull market, the second part of the month was ... Read more

Leave a Reply

Your email address will not be published. Required fields are marked *