SEC lawsuit vs. CoinbaseThere is a pending litigation between the SEC (U.S. Securities and Exchange Commission) and Coinbase, another sign - imo - that Operation CP 2 is still going on
Let's see what this litigation is about
SEC's argument- Certain tokens traded on Coinbase constitute “securities” under U.S. securities law.
- Securities can lawfully be made available for trading by the public only on a registered exchange and only registered brokers can perform brokerage services in connection with securities trading.
- Coinbase is not authorized to act as a securities exchange by way of registration or through any exception, nor is Coinbase registered as a broker of securities.
On that basis, the SEC asserts that Coinbase is operating both as an
unregistered securities exchange and as an
unregistered broker (with respect to any tokens that are securities).
Coinbase’s argument- The SEC lacks authority to regulate Coinbase because none of the digital assets traded on the Coinbase platform are securities.
According to Coinbase, because tokens sold on its platform are not the subject of any formal contract entitling their holders to payment from the issuers or to any interest in their assets, the tokens cannot qualify as “securities” as a matter of law.
When tokens are purchased through Coinbase, “there is no investment of money coupled with a promise of future delivery of anything. There is an asset sale. That’s it.
It is akin to the sale of a parcel of land, the value of which may fluctuate after the sale.
Or a condo in a new development. Or an American Girl Doll, or a Beanie Baby, or a baseball card.”
freemanlaw.comSo, who do you think is right?
The SEC or Coinbase?