SEC Claims in Letter That Coinbase Knew About Securities Law Violations

According to a letter sent by the SEC to a district judge on July 7, Coinbase, having knowledge of the possibility that federal securities laws would apply to its operations, openly treated its shareholders as securities for assets traded on its platform. Will inform about the possibility of being classified in

The regulator’s response stated, “Since becoming a public company, Coinbase has repeatedly informed its shareholders about the risk that crypto assets traded on its platform may be considered securities and therefore Its conduct may violate the federal securities laws.”

According to the SEC, Coinbase is a “multi-billion dollar entity advised by sophisticated legal counsel” that has been deliberately “ignoring over 75 years of deregulation law under Howe” in order to “constitute its own investments.” “Contract”.

This letter is a response to a previous filing by Coinbase. On June 28, the Exchange informed the court of his intention To file a motion for decision. According At Cornell University, a motion for judgment is used if either party believes there is no genuine dispute about material facts in a case.

In this previous letter, Coinbase referred to SEC Chairman Gary Gensler’s appearance before Congress, when he reportedly claimed that ‘there is no market regulator around these crypto exchanges’ and that ‘only Congress’ can regulate crypto exchanges. Can confer the right to regulate. Coinbase also noted that two years after going public, the SEC filed charges that “detailedly described” the activities before regulators and the general public.

Speaking with Cointelegraph, corporate and securities attorney Roland Chase explained that “one of the things the SEC has been authorized by Congress to do is review ongoing public documents and improve company disclosures to potential investors.” providing comments and asking questions in an effort to create.” The federal securities laws governing the process of “going public” are disclosure-based. “This means that the SEC cannot and indeed cannot decline a public listing of a company simply because it thinks investing in that company is a bad idea.”

On June 6, the securities regulator accused Coinbase of allegedly offering unregistered securities since 2019. A pre-motion conference on the matter is scheduled for July 13 at 2:00 PM UTC.

United States Securities and Exchange Commission (SEC) filed Coinbase responds to claims that the regulator lacks jurisdiction to prosecute the crypto exchange.

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