Coinbase was aware of securities law violations, the SEC alleges in a letter

According to a letter sent by the SEC to a district judge on July 7, Coinbase was aware of the possibility that federal securities laws would apply to its operations, openly informing its shareholders about the possibility that its Assets traded on the platform may be classified as securities. are classified.

“Since becoming a publicly traded company, Coinbase has repeatedly informed its shareholders about the risk that crypto assets traded on its platform may be treated as securities and therefore its conduct may violate federal securities laws.” , is the reaction of the observer.

According to the SEC, Coinbase is a “multi-billion dollar entity advised by an experienced legal advisor” that knowingly “ignored over 75 years of investigative law under Howe” in an effort to “disguise what constitutes investment.” constructs its own test”. Contract.”

Screenshot of the SEC’s response to the court on July 7. Source: courtlistener

This letter is in response to a previous request from Coinbase. On June 28, the exchange informed the court of its intention to file judgment. According to Cornell University, a motion for adjudication is used when a party is convinced that there is no genuine dispute over material facts in a case.

In this previous letter, Coinbase impersonated SEC Chairman Gary Gensler to Congress after he claimed that “there is no market regulator around these crypto exchanges” and “only Congress” to regulate crypto exchanges. empowered to regulate. Coinbase also pointed out that two years after the IPO, the SEC filed charges that “detailedly described” the activities before the regulator and the general public.

Speaking to Cointelegraph, corporate and securities attorney Roland Chase explained that “the only work the SEC has been authorized by Congress is to review public records and provide comments and questions in an effort to protect company disclosures.” to potential investors,” adding that the federal securities laws governing the process of “going public” are based on disclosure. “This means that the SEC cannot reject a company’s listing simply because it thinks It’s a bad idea to invest in that company,” he said.

The securities regulator sued Coinbase on June 6 for allegedly offering unregistered securities since 2019. A pre-motion conference on the matter is scheduled for July 13 at 2:00 PM UTC.

The US Securities and Exchange Commission (SEC) has issued a response to Coinbase’s claims that the regulator has no authority to prosecute the crypto exchange.

Magazine: Crypto Regulation – Does SEC Chairman Gary Gensler Have the Last Word?

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