Coinbase Seeks Dismissal of SEC Lawsuit Over Crypto Listings, Questions SEC's Authority
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Coinbase is motioning to dismiss an SEC lawsuit alleging the exchange committed securities violations by offering 13 cryptocurrencies for trading that the SEC considers unregistered securities.
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Coinbase argues cryptocurrencies are not under SEC jurisdiction like stocks, and the SEC has overstepped its authority.
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The judge questioned the SEC, asking them to explain what elements of crypto assets constitute investment contracts.
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The judge expressed concern the SEC is trying to broaden the definition of what constitutes a security.
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The SEC argues crypto assets are typically tied to a blockchain network or "enterprise" similar to an investment contract.