- Cryptobase filed first response to commission lawsuit
- They say SEC has no legal rights over tokens
- The regulator exceeded its authority in rulemaking
Coinbase gave first legal response to SEC lawsuit of June 6. They criticized the Commission’s charges and said the U.S. regulator has no jurisdiction over assets traded on the platform.
The filing details how Gary Gensler’s agency violated due process and went beyond its jurisdiction in the lawsuit against Coinbase.
The legal team criticizes the SEC for gaps in regulation. They also stress that the agency has limited authority.
“For years Coinbase has voluntarily submitted to regulation by several overlapping regulators, adhered to public and limited official guidance from the SEC…We have voluntarily sought guidance from the SEC on how it believes federal laws relate to the digital asset industry…But now the regulator has overstepped its authority in rulemaking.”
In parallel, the crypto-exchange is challenging the recognition of certain tokens as securities. Lawyers pointed out that token issuers do not make any commitments to coin buyers.
“Such commitments do not appear in Coinbase secondary market transactions. The value that Coinbase customers receive has to do with the things bought and sold, not the companies that created them. Therefore, such transactions are not securities transactions.”
Remind that Coinbase itself filed a lawsuit against the SEC for refusing to clarify crypto-regulation issues.