Key Insights:

• Coinbase retaliates against SEC, calling for lawsuit dismissal, citing overreaching claims.
• Coinbase asserts that the contested assets are not securities, contradicting SEC’s standpoint.
• Brad Nickel applauds Coinbase’s legal stance and criticizes SEC’s Chairman for regulatory inaction.

In a striking rebuttal to the U.S. Securities and Exchange Commission (SEC), Coinbase, one of the premier crypto exchanges in the United States, has not only filed an answer but also signalled its intention to dismiss the SEC’s lawsuit. The reason, they claim, is that the SEC’s allegations overreach beyond existing law and hence, should be promptly rejected.

Paul Grewal, the Chief Legal Officer of Coinbase, voiced the company’s stand on the lawsuit via a tweet. He conveyed Coinbase’s commitment to dialogue with regulatory bodies, including the SEC. However, Grewal also emphasized that the claims made by the SEC were, in their opinion, unjust and beyond the legal boundary.

Today @coinbase filed our answer and notice of intent to file a motion to dismiss the @SECGov case against us. You can read our response for yourself – our arguments speak for themselves. 1/2 https://t.co/Ld2ZEejhyM

— paulgrewal.eth (@iampaulgrewal) June 29, 2023

Brad Nickel’s Commendation and Criticism of the SEC

Besides Grewal’s firm standpoint, the crypto community has also weighed in on the issue, with a majority echoing the sentiments of Coinbase. Among the commentators is Brad Nickel, a prominent figure in the crypto space. Nickel expressed his admiration for Coinbase’s motion for dismissal, commending the clarity and eloquence of the legal arguments laid out in the filing.

Significantly, Nickel highlighted Coinbase’s key arguments, one being that the assets in question were not securities from the outset. Consequently, they needed to fulfil the requirements of an investment contract. These points, Nickel suggested, make the legal document compelling enough for even non-legal professionals to understand, and he encouraged the crypto community to delve into the filing.

I rushed through 1st part of this, but in all my years of reading legal docs, the prose in this @Coinbase filing for dismissal is a thing of beauty.

Even if you've never read a legal doc, you will get it.

Go read it.

Coinbase is not messing around either:

These are not… https://t.co/Bw5tCb41L1

— Brad Nickel – Host: Mission DeFi & DeFi Lunch (@b05crypto) June 29, 2023

Moreover, Nickel took a swing at SEC Chairman Gary Gensler. Nickel referred to Gensler’s statement in 2021, in which the chairman confessed the SEC’s lack of authority unless Congress intervened. Additionally, Nickel pointed out that despite this acknowledgement, Congress must still take decisive action.

Conclusion

Coinbase is firmly asserting its stance against the SEC lawsuit. The company is of the view that the current allegations surpass the limitations of the existing law. Coinbase’s audacious move transcends a mere filing for dismissal; it symbolizes a demand for transparent and equitable regulations in the rapidly evolving crypto industry. However, it’s now up to the regulators and legislators to address these bold claims.