Coinbase’s dismissal request for lawsuit challenged by SEC By Investing.com
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In a recent development, the U.S. Securities and Exchange Commission (SEC) has opposed the dismissal request put forth by cryptocurrency exchange Coinbase (NASDAQ:) regarding a lawsuit. The SEC argues that the digital transactions conducted by Coinbase meet the criteria of federal securities laws and case law, thereby qualifying as securities under the Howey test.
The SEC’s stance is based on the premise that buyers anticipate value growth due to issuers’ plans to enhance and maintain the value of their digital assets in the secondary market. This implies that these transactions are investment contracts.
In response to Coinbase’s defense, which cited a court decision related to , the SEC dismissed it outright. The dismissal was on account of the presiding judge’s explicit refusal to make a ruling on secondary market token sales.
This ongoing legal battle underscores the regulatory challenges faced by cryptocurrency exchanges in navigating complex federal securities laws. The SEC’s opposition to Coinbase’s dismissal request signifies its commitment to ensure that such platforms comply with existing regulations, thereby safeguarding investors’ interests.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters
In a recent development, the U.S. Securities and Exchange Commission (SEC) has opposed the dismissal request put forth by cryptocurrency exchange Coinbase (NASDAQ:) regarding a lawsuit. The SEC argues that the digital transactions conducted by Coinbase meet the criteria of federal securities laws and case law, thereby qualifying as securities under the Howey test.
The SEC’s stance is based on the premise that buyers anticipate value growth due to issuers’ plans to enhance and maintain the value of their digital assets in the secondary market. This implies that these transactions are investment contracts.
In response to Coinbase’s defense, which cited a court decision related to , the SEC dismissed it outright. The dismissal was on account of the presiding judge’s explicit refusal to make a ruling on secondary market token sales.
This ongoing legal battle underscores the regulatory challenges faced by cryptocurrency exchanges in navigating complex federal securities laws. The SEC’s opposition to Coinbase’s dismissal request signifies its commitment to ensure that such platforms comply with existing regulations, thereby safeguarding investors’ interests.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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