- Coinbase reported its Q2 2023 financial results.
- In a cover letter to investors, the exchange touched on the SEC lawsuit.
- The company’s general counsel said Coinbase has a good chance of getting it dismissed.
Cryptocurrency exchange Coinbase plans to file a motion to dismiss the SEC lawsuit. This follows an address to the company’s shareholders.
“With respect to the SEC litigation, I want to be very clear. We think we can win. We expect to do so,” Coinbase general counsel Paul Grewal.
The letter to shareholders assumes the exchange will file the petition on Aug. 4, 2023. In it, the company, according to Grewal, relies on the following main points:
- SEC has no authority to regulate the cryptocurrency market;
- Coinbase has never offered securities on its platform;
- the regulator did not offer the exchange registration after the company went public in 2021.
Grewal expects a hearing on the matter to take place in early October 2023.
“Our goal not only in this litigation, but in our overall engagement with U.S. authorities, is to achieve complete regulatory clarity,” the counsel emphasized.
Reminder, Coinbase filed a petition with the SEC in the summer of 2022 to clarify the eligibility of the agency’s regulatory decisions. After a series of proceedings, the court ordered the agency to respond to the request, but that has yet to happen.
SEC filed suit against the organization in early June 2023. To this, the company responded that the regulator has no authority to control tokens on the platform.
The company said that the regulator does not have the authority to control tokens on the platform.