SEC exceeds its authority — Coinbase

The SEC office went beyond the limits of its powers with regard to cryptocurrencies in the case against the exchange. This is the response given by Coinbase to the lawsuit.

What do the representatives of the exchange mean

According to representatives of the crypto exchange, those cryptocurrency assets that were mentioned in the claim are not capable of being considered investment contracts. Therefore, they cannot be equated with securities.

The company also, as an agency, focuses on the Howie test. She explains that digital assets on the secondary crypto market of the exchange are not included in any agreements under which the sale of crypto assets linked to the contract is carried out. In addition, companies that issue crypto assets do not have any obligations to their users.

The exchange also added that these obligations cannot arise during transactions on the secondary market of the crypto platform. Since the value received by users as a result of them is obtained from the sale, and not from the companies that developed them, such transactions cannot be an agreement with a security.

Coinbase also added that if the agency had the right to identify crypto assets and it was within the scope of its regulation, such measures should be rejected for independent reasons. She added that this violates the rights of the crypto platform to the relevant legal process. This indicates a serious abuse of the process.

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