Paul Grewal, the Chief Legal Officer at digital asset firm Coinbase (NASDAQ:COIN), recently noted that after Coinbase gave notice of it intent to move to throw out their case agiast the US Securities and Exchange Commission (SEC), they had reportedly “consented to a few extra days for the SEC to explain why it intends to oppose.”
Grewal confirmed that Coinbase has now filed and, sadly, “it’s more of the same.”
Grewal claims that the SEC ignores “the plain requirement in the Supreme Court’s holding in Howey decades ago that an investment contract first and foremost requires enforceable rights against an issuer.”
Grewal explained that it “requires more than just an investment of money etc.”
According to Grewal, the SEC ignores their obligation “to give due regard to the public interest and investor protection when they allowed them to list publicly over two years ago.”
Furthermore, Grewal alleges that the SEC ignore “the statements of their own Chair a month later in testimony before Congress that there are no regulatory authorities applicable to cryptocurrency exchanges, like [Coinbase].”
He also mentioned that the SEC ignore “the clear and unmistakable warnings of the Supreme Court just last week against regulatory overreach in major questions reserved to Congress.”
He concluded:
“And on and on it goes, ignoring these dispositive points. But apparently we agree on one thing— many of these issues can and should be decided promptly as matters of law. Read it for yourself.”
And on and on it goes, ignoring these dispositive points. But apparently we agree on one thing— many of these issues can and should be decided promptly as matters of law. Read it for yourself. 6/6 pic.twitter.com/rKJIsYStSw
— paulgrewal.eth (@iampaulgrewal) July 7, 2023
According to many blockchain industry professionals, the US SEC’s hostile stance towards the crypto sector could lead to businesses moving operations to other jurisdictions like the UK, the Middle East, and in areas like Southeast Asia, particularly Hong Kong.
Coinbase has also been increasingly focusing on its global expansion strategy, with the UK being a key market that the exchange operator aims to serve in the long-term. In addition to catering to European clients, Coinbase has also established various initiatives in India so that they can maintain operations with steady revenue growth.
