According to a recent report, Coinbase disclosed its intentions to file an order probably on Friday, requesting the dismissal of the SEC’s complaint. On Thursday, Coinbase published its second-quarter 2023 earnings report presenting its first financial report after the US Securities and Exchange Commission (SEC) sued the exchange.
Coinbase Chief Legal Expects to Win
On the business’s second-quarter 2023 earnings call on August 3, Paul Grewal, chief legal officer at Coinbase, stated: “With respect to the litigation with the SEC, I want to be very clear. We do think we can win. We expect to win.”
Grewal stated that Coinbase would bring a motion on August 4 asking for the court to throw out the complaint. He added: “Tomorrow […] We will be moving the court for an order dismissing the case in its entirety.”
Decision by October End
He anticipates that the brief detailing of the court’s explanations is expected to be presented and assessed by the end of October. Additionally, he noted that the company is going to argue that Coinbase did not offer the securities on the platform and that the SEC possesses no authority to regulate the trading platform.
Coinbase Seeks Dismissal of Lawsuit
Another red flag for the SEC is the fact that the agency never advised Coinbase to register even when it declared Coinbase’s authorization to be valid in April 2021. Grewal states: “The reason why we are so focused on pushing for regulatory clarity here in the U.S. is that at present, under the status quo, we have very conflicting messages about what the law provides.”
SEC Seeks to Delist Every Token but Bitcoin
Recently, Coinbase CEO Brian Armstrong revealed that prior to the organization being faced down with a regulatory proceeding in June, SEC demanded it to delist all of the tokens on its exchange with the exception of the most popular digital currency Bitcoin (BTC).
Notably, at the start of the year, SEC Chair Gary Gensler made an audacious claim implying that all cryptocurrencies except for BTC are categorized as securities and, as such, fall within the commission’s authority.