Coinbase claims ‘more of the same’ after SEC once again refuses to engage

Coinbase serves. The SEC returns. Coinbase with a forehand smash. The SEC reaches… and their backhand goes into the net!


HlibShabashnyi/Shutterstock modified by Blockworks


The SEC has responded to Coinbase, again, this time to say that it will oppose any motion brought forth by Coinbase seeking to dismiss the regulatory agency’s lawsuit. 

“But Coinbase’s own actions belie these grievances. Before becoming a publicly traded company, Coinbase itself relied on the very factors federal courts follow, as set forth by the Supreme Court in SEC v. W.J. Howey Co. to assess whether the sale of crypto assets on its platform would qualify as a transaction in securities. In other words, Coinbase adopted the very legal framework as a basis for making listing decisions that it now claims has no applicability to its activities,” the SEC said in its response letter. 

Coinbase’s chief legal officer Paul Grewal called the letter “more of the same” on Twitter and defended the use of the Howey Test in the company’s response.

“They ignore 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. It requires more than just an investment of money,” he wrote. 

Loading Tweet..

The SEC reiterated its claim that Coinbase operates as an unregistered exchange — which is one of the key claims in its lawsuit filed against the crypto exchange — and claims that Coinbase is using “subterfuge” by repeatedly invoking “equity to justify its illegal conduct.”

In a June 29 filing, Coinbase argued that the SEC could not “retroactively” regulate digital asset exchanges and that the SEC was out of bounds for attempting to “seize power” in order to regulate cryptocurrencies. 

“In the face of such uncertainty, and lacking a mandate, regulators may not seize power for themselves. That is the province of the legislature,” Coinbase argued. 

A fact, Grewal tweeted, that the SEC ignored in its letter to the Court on Friday. 

“They ignore the clear and unmistakable warnings of the Supreme Court just last week against regulatory overreach in major questions reserved to Congress,” Grewal said. He had previously compared the Major Questions Doctrine to the SEC’s case against Coinbase. 

Loading Tweet..

The SEC and Coinbase’s lawyers are scheduled to “meet and confer” on July 10, according to the court document filed on Friday.


Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg


Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as which has seen significant traction.


The bitcoin halving slated for April 2024 — an event expected to spur upward price action for BTC — could be a boon for Block’s stock price, analysts say


Seed Club founder Jess Sloss is excited to “open the doors and let other people see what we’ve been seeing for the last few months”


Blockchain is a “natural fit” in games based on open economies and user-generated content, says Wyatt


Their current stance is a half-baked attempt that could stifle innovation and burden an emerging industry


Maker’s DeFi-focused “subDAO” passed a proposal activating a lending market for DAI on the Gnosis Chain


Certain creditors could be repaid sooner, with one hedge fund exec telling Blockworks it expects a payout by the end of the year