Coinbase Urges Court to Dismiss SEC v. Wahi Lawsuit

Coinbase's Petition for Rules on Digital Asset Securities

Coinbase argued that the US Securities and Exchange Commission (SEC) needs to prioritize developing proper rules and guidance related to securities instead of focusing on misguided securities lawsuits.

Paul Grewal, Coinbase's Chief Legal Officer, explained in a tweet that the exchange does not list securities.

However, Coinbase petitioned the SEC to create rules on digital asset securities last year as existing rules do not apply to digital assets. Coinbase is also working on a crypto securities market plan to offer securities.

Coinbase Asks Court to Dismiss SEC v. Wahi Lawsuit

Coinbase challenged the securities fraud charges in the SEC v. Wahi case and requested that the lawsuit be dismissed as assets listed by Coinbase are not securities, and the SEC is focusing on what should be a criminal case. In February, the Blockchain Association and the Chamber of Digital Commerce also filed amicus briefs separately, requesting the court to dismiss the lawsuit as old securities rules do not apply to digital assets. 

The associations argued that the SEC's "regulation by enforcement" campaign is threatening the US digital assets market and investors.

The SEC-led crypto regulatory crackdown in the US is heavily impacting the markets. While Coinbase, Paxos, Ripple, and other cryptocurrency firms continue to argue that new rules and regulations are required, the SEC regulates the crypto market using outdated rules for completely new technology.