Coinbase to argue SEC crypto jurisdiction in federal court
Crypto exchange Coinbase and the United States Securities and Exchange Commission (SEC) will be presented to the court to decide the next steps in the case.
On January 17 at 10 am ET (3 pm UTC), a court in New York is expected to hear oral arguments on Coinbase's arguments against the SEC's allegations. On June 6, 2023, the SEC sued Coinbase, a cryptocurrency exchange that violated federal securities laws.
The agency argued that 13 tokens listed on Coinbase are securities, including coins such as Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Sandbox (SAND), Axie Infinity (AXS), Chiliz (CHZ). Flow (Flow), Internet Computer (ICP), Near (Near), Voyager (VGX), Dash (DASH) and Nexo (NEXO).
Jeremy Hogan, a partner at Hogan & Hogan, said they “rarely grant,” but District Judge Catherine Polk has experience dismissing crypto cases. In the year In 2013, she filed a motion to dismiss charges against Uniswap for selling “fraudulent tokens.”
Coinbase is seeking an injunction to dismiss the case, challenging the SEC's authority over crypto exchanges and noting that the regulator did not suggest a requirement to register as a securities exchange when it approved Coinbase's April 2021 registration statement, according to Hogan. US courts to win even if they don't dismiss lawsuits.
SEC v. Coinbase BIG hearing to dismiss is Wednesday morning. @MetaLawMan will be there live!
Dismissals are rarely granted so I wasn't expecting much. Anyway, I looked at the preliminary injunction from the same judge in the crypto case and…
— Jeremy Hogan (@attorneyjeremy1) January 15, 2024
“Given this judge's early dismissal of the Uniswap case, her clear understanding of the technology, her finding that IT is a commodity, and her recognition that Congress needs to be involved in this process … I'm very interested to see how this plays out. ” Hogan wrote on January 15 X.
“I cannot predict how Judge Failla will rule on Coinbase's motion to dismiss until the hearing is over tomorrow. However, one thing I can predict with confidence is that the judge will pose some tough questions to the SEC's lawyers, crypto lawyer MetaLawMan wrote on X.
The case is part of the SEC's crackdown on crypto companies since the collapse of FTX in November 2022. The case could seal the fate of many crypto tokens in the United States.
Against Coinbase, the SEC is taking a similar approach to the Binance case, asking the court to consider its recent ruling in Terraform Labs, which ruled that the company sold securities without registration. The decision, according to the SEC, has given more reasons to the issues on crypto exchanges.
Additional reporting by Helen Partz
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