Coinbase has filed an amicus brief in the SEC v. Wahi insider trading case asking the court to dismiss the lawsuit as the U.S. Securities and Exchange Commission needs to prioritize working on proper rules and guidance related to securities, not misguided securities lawsuits.
Coinbase chief legal officer Paul Grewal in a tweet on March 14 disclosed that Coinbase has filed an amicus brief in the SEC v. Wahi in support of dismissing the misguided lawsuit.
Paul Grewal asserts that Coinbase doesn’t list securities, but petitioned the SEC to make rules on digital asset securities last year as the existing rules don’t apply to digital assets. Coinbase is working on crypto securities market plan to offer securities.
“Coinbase doesn’t list securities but we would like to. We even petitioned the SEC to begin rulemaking on this issue last year. We put forward 50 questions that would need to be answered for us to list securities – we haven’t heard back on any of them.”
Instead of developing proper rules or registration options, the SEC is focusing on misguided lawsuits that “distort the legal definition of an investment contract beyond recognition.”
While Coinbase considers the insider trading and wire fraud charges by the U.S. DOJ as valid after Ishan Wahi pleaded guilty, it challenges the securities fraud charges. Coinbase asked the court to dismiss the lawsuit as assets listed by Coinbase are not securities and the SEC is focusing on what should be a criminal case.
Prior Challenges to the SEC for its “Regulation by Enforcement” Campaign
In February, the Blockchain Association and the Chamber of Digital Commerce also filed amicus briefs separately asking the court to dismiss the lawsuit as old securities rules don’t adhere to digital assets.
The associations also highlighted that “regulation by enforcement” campaign by the SEC is threatening the U.S. digital assets market and investors.
Meanwhile, the markets are heavily impacted by the SEC-led crypto regulatory crackdown in the U.S. While Ripple, Coinbase, Paxos, and other crypto firms continue to claim the need for new rules and regulations, the SEC regulates the crypto market using old rules for a completely new technology.
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