On August 4, Coinbase intends to submit a petition request seeking the dismissal of the Securities and Exchange Commission complaint, stating that the company anticipates winning the case.
Paul Grewal, chief legal officer at Coinbase, expressed confidence that the exchange will prevail in the legal action initiated by the regulator during the company’s August 3 second-quarter 2023 earning results report.
“I want to be absolutely clear with regard to the legal dispute with the SEC. Yes, we believe we can prevail. We anticipate triumph.
On June 6, the SEC filed a lawsuit against the exchange, claiming that it traded in unregistered securities and sold them.
Grewal said Coinbase will submit a petition requesting the court to dismiss the lawsuit. We will request an order from the court terminating the lawsuit entirely tomorrow.
Grewal stated that the company will claim that Coinbase did not list securities on its site, that the Securities and Exchange Commission (SEC) has no regulatory power over cryptocurrency exchanges and that when it made Coinbase’s registration statement effective in April 2021, it never intimated to Coinbase that it was necessary to register.
He anticipates that the court will receive and fully analyse the brief outlining its reasons at the end of October.
Grewal said, “Gaining regulatory clarity is the aim of all of our interactions with the SEC and the U.S. government, not just the litigation.”
According to Grewal, “the reason that we are so focused on advocating for legislative clarity here in the U.S. is that at the moment, under the status quo, we have very divergent opinions about what the regulation provides.”
Apart from this, he also cited the divergent views on Ether’s legal standing expressed by the chairs of the SEC and the CFTC, Gary Gensler and Rostin Behnam, respectively.
Behnam claimed that ETH was a commodity during a Senate hearing in March, while Gensler had earlier stated that every digital currency outside Bitcoin is securities.
Grewal went on and said Numerous laws that are currently in force for the sector “were drafted well before the internet even existed.”
