Coinbase Challenges SEC's Broad Definition of Securities in New Court Filing

cryptonews.com:

Coinbase's submission of a "final petition" to the court in its ongoing legal battle with the US Securities and Exchange Commission (SEC) argues tokens don't necessarily represent the definition of an investment contract and that the SEC has overstepped its regulatory bounds.

In an October 24 filing in the Southern District of New York, the company articulated its position in a legal brief addressed to Judge Katherine Polk Failla of the Southern District of New York. This action came as a response to the regulator's assertions, which were detailed in a 40-page rebuttal filed earlier this month, as disclosed in a court filing.

Coinbase strongly criticized the SEC and argued that the SEC's broad definition of what constitutes a security was unwarranted. The exchange asserted that the SEC was attempting to assert jurisdiction "over essentially all investment activity," a power that, according to Coinbase, only Congress is constitutionally entitled to exercise, as established under the major questions doctrine.

Coinbase contested that the cryptocurrency lists should not fall under the purview of the regulator. In the final plea, the US crypto exchange stated on Tuesday to a federal judge seeking to dismiss the lawsuit, which was filed against it in June.

The filing seeks Judge Failla's dismissal of the SEC's case at an early stage. A motion for judgment on the pleadings requests that the court evaluate whether a legal ruling can be made based on the assumption that all the facts presented in the SEC's complaint are accurate.

Judge Failla has the option to request Coinbase and the SEC present oral arguments in court. Subsequently, she can make a judgment on the case, opt for its dismissal, or decide to proceed with a jury trial.

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