America’s largest cryptocurrency exchange, Coinbase, has filed a motion to dismiss a lawsuit brought against it by the Securities and Exchange Commission (SEC). In the motion, Coinbase argues that cryptocurrencies are not investment contracts or securities, and therefore fall outside the SEC’s jurisdiction. The lawsuit, filed on June 6, accuses Coinbase of failing to register as a national securities exchange, clearing agency, and broker, despite operating as all three. The SEC also alleges that Coinbase violated securities laws by offering unregistered assets on its platform. Coinbase has defended itself by claiming that the SEC has misinterpreted the definition and application of the Howey Test, and that the assets in question are not securities. The exchange cites the SEC’s case against Ripple Labs as an example of the agency’s inconsistent approach to defining securities. Coinbase’s motion seeks to have the lawsuit dismissed.
