- The exchange acknowledged the possibility of federal securities laws applying to its listings several years ago
- The next hearing is set for July 13
The Securities and Exchange Commission released a new statement Friday, July 8, claiming that Coinbase acknowledged the possibility of federal securities laws applying to its listings several years ago.
The SEC responded to Coinbase’s recent statement, in which it wrote that the agency did not have enough jurisdiction to sue it. Here’s what the Commission writes in its latest lawsuit:
“Coinbase, with enormous turnover and advice from experienced lawyers, claims that it was not consciously capable of violating federal securities laws with its actions. They also believe that in confirming Coinbase’s registration statement in 2021, the SEC confirmed the legality of the company’s underlying business forever
But the Commission points out that Coinbase had previously adopted the legal framework that the U.S. Supreme Court has established for determining whether certain cryptocurrencies meet the federal securities laws. As part of this, Coinbase was prohibited from making any statements by cryptocurrency issuers that traditionally involve securities.
“These actions clearly show that Coinbase was conscious of the possibility of applying securities laws to its operations and knew the rules that needed to be considered to assess the legality of its actions. Nevertheless, it deliberately took that risk in the name of growing its business,” the Commission said in a statement.
The hearing is now set for July 13 in the U.S. District Court for the Southern District of New York.
June 23 Coinbase has won a victory in the United States Supreme Court case against the SEC. The judge sided with the company, deciding a case that promotes companies’ ability to resolve disputes with customers and employees through arbitration.