From NasdaqMarketSite:

Coinbase will argue in court that the U.S. securities regulator should dismiss its case, claiming the tokens traded on its crypto exchange are not securities. The outcome will have implications for digital assets and clarify the SEC’s jurisdiction over the sector. Other crypto firms have expressed similar views.

The world’s largest publicly traded cryptocurrency exchange, Coinbase, claims that crypto assets are distinct from stocks or bonds and should not be subject to SEC oversight. The SEC sued Coinbase last year, alleging that it facilitated trading of at least 13 crypto tokens that should have been registered as securities.

The SEC also targeted Coinbase’s “staking” program, alleging that it should have been registered with the agency. The lawsuit is among several that the SEC has brought against the crypto sector, focusing on companies selling digital tokens and firms offering trading platforms and clearing activity.

Coinbase asked a judge to dismiss the SEC’s lawsuit, citing a separate case in which a judge found that Ripple Labs did not violate federal securities law. However, the SEC argued that the case against Coinbase should proceed, citing a different court’s ruling in the case of crypto developer Terraform Labs.



Read more: Coinbase, SEC set to face off in federal court over regulator’s crypto authority