- Coinbase is seeking to dismiss an SEC lawsuit alleging it allowed trading of cryptocurrencies that should have been registered as securities. Coinbase argues the SEC lacks authority to regulate cryptocurrencies in this way.
- The lawsuit is part of an SEC crackdown on the crypto industry following FTX’s collapse. The SEC is taking a similar approach in its case against Binance, citing a recent court ruling against Terraform Labs.
- The outcome of the Coinbase case could determine the status of major cryptocurrencies like Solana and Cardano in the US. More broadly, it represents an inflection point in the power struggle between regulators and the crypto industry.
The crypto exchange Coinbase is set to clash with the Securities and Exchange Commission (SEC) in a pivotal court hearing on January 17th. The outcome of the case could determine the fate of several major cryptocurrencies in the United States.
Coinbase Seeks to Dismiss SEC Lawsuit
Coinbase is seeking a dismissal of a lawsuit filed by the SEC last June. The SEC alleges that Coinbase allowed the trading of 13 digital assets that should have been registered as securities. However, Coinbase contends the SEC lacks authority to regulate cryptocurrencies in this way. According to experts, while dismissals are rare, the judge presiding over the case has previously ruled in favor of crypto firms against the SEC.
SEC Crackdown on Crypto Industry
This lawsuit is part of a broader SEC crackdown on the crypto industry following the collapse of FTX. The SEC is taking a similar approach to its case against Binance, citing a recent court ruling against Terraform Labs. This decision found that Terraform sold securities without proper registration, providing grounds for the SEC’s actions against crypto exchanges.
The Future of Crypto Regulation
The Coinbase hearing could determine the status of major cryptocurrencies like Solana, Cardano and Polygon in the US market. More broadly, the case represents an inflection point in the power struggle between regulators and the crypto industry. The court’s ruling will likely influence the SEC’s future oversight of cryptocurrency exchanges. For now, the crypto community awaits the judge’s decision on Coinbase’s motion to dismiss.
