Coinbase vs SEC: the crypto company seeks a full dismissal of the case

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The Coinbase vs US SEC lawsuit may be coming to an end. At least that is the will of the crypto platform, whose Chief Legal Officer, Paul Grewal, has revealed Coinbase’s intention to seek a full dismissal of the case

Coinbase vs SEC: the filing of the order to dismiss the case entirely 

Coinbase appears to want to finally close the case brought by the US Securities and Exchange Commission (or SEC) earlier this summer. 

In a call dedicated to the platform’s quarterly performance, Coinbase Chief Legal Officer Paul Grewal stated what the crypto company’s next move would be. 

Grewal reportedly stated that Coinbase plans to file a court order on Friday to completely dismiss the lawsuit filed against it by the SEC

In this regard, Grewal also said he has full confidence in the arguments presented to the court, but still expects to win the case against the SEC. Coinbase’s goal would be to work with the SEC and regulators to gain “regulatory clarity.” 

Specifically, Grewal reportedly said the following:

“Well, tomorrow, as it turns out, in our case in the Southern District of New York, we will be moving the court for an order dismissing the case in its entirety.”

Coinbase vs SEC: the charges from June 2023

It was early June 2023 when the SEC officially sued the crypto-exchange Coinbase in New York District Court. 

The regulator allegedly accused the platform of violating registration requirements for its staking-as-a-service and offering unauthorized security sales to investors. 

Among the various tokens defined by the SEC as “security” were listed SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO. 

In response to these allegations, the CEO of Coinbase, Brian Armstrong, had suggested that it would be up to the US Congress to resolve the conflict with the SEC over “regulatory confusion on the crypto matter.” 

In any case, the Coinbase vs. SEC case affected the performance of the platform, which after mid-July had seen COIN’s price rise to over $110, but starting on 20 July it began its descent to $88 at the beginning of the week. At the time of writing, COIN appears to be regaining ground, even though it is priced at $90. 

Doubts about the Ripple case

While Coinbase is aiming to finally close the case moved by the SEC, another crypto company in conflict with the US regulator since December 2020 seems to have managed to get a partial win. 

This concerns Ripple, the company behind XRP, which has been resisting the lawsuit against the SEC for three years, managing to obtain a ruling from US District Judge Analisa Torres on 13 July, affirming that XRP is not a security

Unfortunately, this decision is not shared by all. Indeed, recently, federal judge Jed Rackoff provided detailed interpretations of the Howey test to put everything into question again. 

Ripple’s win had lifted spirits throughout the crypto sector. With Rackoff’s intervention a few days ago, the price of Bitcoin (BTC) saw a small dump, which caused the price to slip below $29,000.