SEC Asks Judge to Deny Coinbase’s Motion to Dismiss Lawsuit
- The SEC has asked a New York District Court to deny the motion filed by Coinbase to dismiss the lawsuit by the agency.
- It once again emphasized the fact that some of the cryptocurrencies sold on the trading platform were securities.
- The agency’s motion to appeal the decision made by Judge Analisa Torres in the XRP lawsuit has been rejected.
- Torres said that the SEC failed to meet its burden to show that there were controlling questions of law.
In the last 24 hours, the United States Securities and Exchange Commission (SEC) has received a rejection for its appeal in the ruling in the lawsuit against Ripple regarding the sale of the XRP token. The regulator has also asked the judge to dismiss the request put forth by the largest exchange in the US, Coinbase, to dismiss the lawsuit that the agency had filed against it earlier this year.
Coinbase had earlier filed a motion asking the court to dismiss the lawsuit filed by the SEC against the crypto exchange. On the other hand, on October 3, the agency asked the judge to deny the exchange’s request for the dismissal of the lawsuit. In a New York District Court, the regulator once again emphasized the fact that some of the cryptocurrencies sold on the trading platform were securities.
The regulator believes that some of the cryptocurrencies sold on Coinbase are securities under the Howey test and therefore must be registered with the SEC. It was also noted that Coinbase has “known all along” that the cryptocurrencies it sells are securities if they meet the Howey Test.
“Each crypto asset issuer invited investors—including purchasers on Coinbase’s platform—reasonably to expect the value of their investment to increase based on the issuer’s broadly disseminated plan to develop and maintain the asset’s value,” the SEC wrote in a brief.
In response to these statements, Coinbase Chief Legal Officer Paul Grewal stated that the arguments were “more of the same old same old” while adding that the assets it lists “are not securities and are not within the SEC’s jurisdiction.”
Judge Dismisses SEC’s Appeal in XRP Lawsuit
On the other hand, district court judge Analisa Torres, who had ruled that XRP was not a security when sold to retail investors, has rejected the SEC’s motion for appeal in the XRP lawsuit.
In a court order, the judge said that the regulator failed to meet its burden to show that there were controlling questions of law or that there were substantial grounds for differences of opinion on the matter.
“The SEC’s motion for certification of interlocutory appeal is denied, and the SEC’s request for a stay is denied as moot,” Torres added.
As reported earlier by Bitnation, SEC Chair Gary Gensler maintained a combative stance against cryptocurrencies in front of the House Financial Services Committee. He argued that crypto firms have been dangerously careless with customer assets.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
