The largest U.S. crypto exchange Coinbase has filed a motion asking the court to dismiss the U.S. Securities and Exchange Commission's (SEC) charges against it. In the filing, the firm described the SEC's move as an extraordinary abuse of process. The move came nearly three weeks after the SEC filed a lawsuit against Coinbase over alleged U.S. securities law violations. - In its charges, the agency labeled 12 tokens listed on Coinbase as unregistered securities.
- As part of the recent legal motion, Coinbase argued that the SEC approved the exchange going public in 2021 without requiring it to register with the agency or classify any tokens listed on the exchange as securities.
- The company also underlined that it underwent an extensive review process for several months before going public and involved in-depth discussions with the SEC.
- Besides, the exchange cited the SEC Chair Gary Gensler's testimony from 2021 when he said only Congress had the power to regulate the crypto industry.
- Coinbase's legal team has stated that even if all the allegations in the lawsuit are true, they are beyond the SEC's legal authority.
- The firm added that the shift in the SEC's approach toward the crypto industry confused market participants.
One day before Coinbase, Binance was also sued by the SEC through a 136-page complaint over U.S. law violations. - Over the last several months, many other crypto exchanges, including Kraken, Gemini, and Bittrex, came under increased scrutiny by the SEC.
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