American crypto exchange Coinbase recently filed a motion to dismiss the lawsuit filed by the U.S. Securities and Exchange Commission (SEC). In its latest court filing, the crypto giant argued that the securities regulator had no legal claim to pursue the case in question given that its jurisdiction over crypto tokens had not been certified.
Crypto lawyer Jeremy Hogan took to Twitter earlier today to share his take on Coinbase’s latest court filing:
Coinbase filed its 177 page (!) response to the SEC lawsuit.
— Jeremy Hogan (@attorneyjeremy1) June 29, 2023
What jumped out to me is how Coinbase uses information/experience from the Ripple case (See the Hinman email reference below) and also throws in new stuff (the Major Questions Doctrine).
Very Nicey. https://t.co/TYOm3SH6eb pic.twitter.com/y9Vz4Sm2D5
Jeremy Hogan pointed out that Coinbase used experience from the SEC’s lawsuit against fellow crypto entity Ripple and also cited information from that lawsuit in its response to the securities regulator. According to the crypto lawyer, the crypto exchange also invoked the major questions doctrine which states that issues of major political or economic significance are not to be delegated to federal agencies.
The doctrine also presumes that the United States Congress would make major policy decisions itself, rather than leaving those decisions to agencies like the SEC. Hogan indicated that the doctrine was well placed given the impact of the lawsuit’s verdict on the country’s economic policy and stance on emerging technology like blockchain.
Speaking on the response to the SEC’s lawsuit, Coinbase’s Chief Legal Officer Paul Grewal tweeted:
We welcome dialogue any time with any regulator, including the SEC, and believe new legislation and rulemaking is the right path forward. But the claims in this case go far beyond existing law – and should be dismissed.
The filing by Coinbase in the U.S. District Court for the Southern District of New York also questioned the SEC’s jurisdiction over crypto tokens and its interpretation of securities laws. The crypto exchange alleged that the securities regulator’s lawsuit violated its due process rights and accused it of “abuse of power”.
