Coinbase Challenges SEC’s Classification of Cryptocurrencies as Securities
– Coinbase has argued in a court filing that the US Securities and Exchange Commission (SEC) overstepped its authority by classifying cryptocurrencies listed on the exchange as securities.
– The exchange claims that the SEC’s definition of what qualifies as a security is too broad and that the cryptocurrencies listed on Coinbase are not under the regulator’s purview.
– Coinbase argues that the SEC has undertaken a “radical expansion of its own authority” and claims jurisdiction over all investment activity, which only Congress is entitled to do.
– The SEC sued Coinbase in June, alleging that the exchange violated securities laws by listing tokens it considers securities without registering with the regulator.
– The court may ask Coinbase and the SEC to appear for oral arguments and then issue a judgment on the case, dismiss it, or move for it to be heard by a jury.