Paul Grewal has unveiled Coinbase’s intention to lodge a formal petition aimed at the dismissal of SEC Lawsuit. Grewal, the legal head of the cryptocurrency exchange, contends that the SEC’s claims of securities sales are unfounded.
Anticipated to be filed on August 4th, Coinbase’s petition aims to contest the SEC’s lawsuit. Grewal exudes substantial confidence in the exchange’s potential triumph.
In the Q2 2023 earnings call on August 3rd, Paul Grewal, Coinbase’s Chief Legal Officer, expressed the exchange’s confident outlook for the imminent legal confrontation with regulators.
“In relation to the ongoing legal proceedings with the SEC, I would like to firmly assert our stance. We genuinely believe in our ability to emerge victorious. Our expectations are aligned with a positive outcome.”
On June 6th, the SEC sued Coinbase, claiming unauthorized securities sales and operating as an unregistered exchange. Grewal revealed Coinbase’s intention to formally request lawsuit dismissal by August 4th.
“On the morrow… We shall approach the court with a formal petition, seeking the comprehensive dismissal of this case.”
Coinbase’s Defense: Contesting Allegations and SEC Jurisdiction in Dismissal of SEC Lawsuit
In support of its case, Coinbase argues that it did not facilitate the trading of securities on its platform. Additionally, it maintains that the SEC lacks the appropriate jurisdiction over cryptocurrency exchanges. Furthermore, Coinbase maintains the regulator didn’t signal registration necessity upon accepting Coinbase’s April 2021 statement.
Grewal expects their comprehensive arguments to be submitted and evaluated by the court. This process will likely conclude around the end of October.
“Our overarching objective, encompassing not just this legal dispute but our broader interactions with the SEC and the U.S. government, is to establish regulatory lucidity,” Grewal elaborated.
“The impetus behind our unwavering commitment to advocating for regulatory clarity in the United States lies in the current state of ambiguity. The prevailing circumstances offer disparate interpretations of legal provisions,” Grewal expounded.
To illustrate this difference, he references the differing statements of SEC Chair Gary Gensler and CFTC Chair Rostin Behnam. They have contrasting views on how to legally classify Ether.
Behnam, during a Senate hearing in March, classified ETH as a commodity, whereas Gensler has previously designated all cryptocurrencies except Bitcoin (BTC) as securities.
Numerous extant legislations governing the domain “were enacted well before the advent of the internet,” Grewal appended.
“Regardless of the specific outcome of any motion or legal dispute, the paramount goal is attaining absolute clarity. That is how we define triumph.”
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