Through the new filing, the American securities regulatory body claimed that Coinbase exchange intentionally violated Federal securities laws.
The United States Securities Exchange Commission (SEC) is the top financial regulatory body in the US. This regulatory body also regulates the crypto sector with the help of traditional securities laws. In the first week of the last month, the SEC body sued Coinbase exchange over alleged unregistered securities offerings.
Just a few days back, Coinbase’s legal team submitted a filing in the court in response to the SEC’s suit and said that Coinbase team always listed only those crypto assets which were commodities (non-security crypto tokens) and also urged the court to dismiss SEC’s suit.
The SEC body responded against Coinbase’s claims and filed new documents. The new filing read that the SEC attorneys urged the court judge to dismiss Coinbase’s claims because the Coinbase team was already aware of the unregistered crypto assets listing. In short, the SEC alleged that the Coinbase team intentionally violated securities laws.
“These actions clearly show that Coinbase understood that the securities laws could apply to its conduct and knew which rules to consider in evaluating the legality of its conduct, but made the calculated decision to take on this risk in the name of growing its business,” the SEC body said.
Ripple vs SEC
After the SEC’s suit against Coinbase, many experts claimed that Coinbase is standing strong in this suit because Coinbase was providing trading of XRP coin on the Coinbase trading platform, before Jan 2021.
In Dec 2020, the SEC body sued Ripple (XRP) without any prior notice or information and claimed that XRP was an unregistered security. And at the time XRP coin was trading on the Coinbase exchange.
Notably, the SEC body failed to raise questions against XRP offerings on the Coinbase exchange. In short, the SEC body was giving opportunity & creating a complicated situation for the crypto companies to violate securities laws.
So far to date, the Coinbase team is providing all the services as usual and brought no changes. Coinbase CEO Brian Armstrong also confirmed that Coinbase will fight against allegations with full confidence.
Read also: IMF says existing taxation tools are not sufficient for the crypto sector
