Coinbase challenges SEC’s attempt to dismiss defenses, asserts lack of regulatory authority over crypto

According to a July 12 report, Coinbase described its intention to defeat the U.S. Securities and Exchange Commission (SEC) defenses as an “unfavorable” motion. letter To Judge Catherine Faira.

In the letter, Coinbase’s attorneys stated that the SEC’s proposed motion did not meet the criteria for dismissal, and that it was found to contain “substantial issue doctrine, abuse of discretion, equitable estoppel, dirty hands, and fetters.” ” should be successful.

The “leading question principle” is a principle of U.S. administrative law. Fundamentally, the principle is that federal agencies do not have the power to issue regulations on major policy issues unless Congress clearly and explicitly delegates powers to them. This principle is often invoked in legal challenges to agency regulations, particularly in disputes over the extent of an agency’s regulatory authority.

Meanwhile, Coinbase Chief Legal Officer Paul Grewal said: said The exchange is scheduled to go to court today, July 13.

Coinbase restates its defenses

Coinbase said the U.S. Congress has yet to grant the SEC regulatory authority over the cryptocurrency industry, adding that lawmakers are still “considering the regulatory structure of the digital asset industry.”

Coinbase said the US Supreme Court’s recent application of the principal inquiry doctrine to a similar case shows the SEC’s inability to defend its claims. Mr. Grewal recently explained how the SEC’s interpretation of the principle in the main question contradicts the Supreme Court’s interpretation.

The exchange also highlighted the SEC’s previous statements and actions as a de facto argument as to why regulators failed to take defensive action. Coinbase wrote:

“The same applies to other defenses the SEC is proposing to go on strike. Coinbase’s abuse of discretion defense, based on the Commission’s decision to do so, is clearly founded on facts and law.”

Coinbase noted that all of the SEC’s proposed defenses carry the same factual predicate as the fair notice defense, and that regulators surprisingly don’t question it.

Meanwhile, Coinbase wants to move the matter forward as quickly as possible, with the exchange requesting that the complaint and opening brief be submitted within seven days of the court order, and that the reply brief be submitted no later than 28 days after the court order. .

The Coinbase post contested the SEC’s attempt to dismiss the defense, arguing its lack of regulatory authority over crypto, and was first published on CryptoSlate.

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