The U.S. Securities and Exchange Commission (SEC) has urged a federal judge to reject the motion by Coinbase Inc. (NASDAQ: COIN) to dismiss the lawsuit against it. According to the regulator, the cryptocurrency exchange knew the digital assets it sold were deemed securities under the Howey Test.
According to the reports, the SEC submitted a filing in a New York District Court on October 3, refuting claims in Coinbase’s dismissal motion. The regulator reiterated its stance that several cryptocurrencies listed on Coinbase’s platform were investment contracts under the Howey Test, hence subject to SEC registration.
The SEC maintained that Coinbase has “known all along” that the cryptocurrencies it sells are securities if they meet the Howey Test, a claim that the exchange recognized in its filings with the SEC.
The commission also dismissed Coinbase’s “major questions doctrine” argument, which suggested that the SEC has no authority over the crypto market until Congress declares it so.
In response to the regulator’s opposition, Coinbase’s legal chief, Paul Grewal, stated on Twitter that the cryptocurrencies listed on the exchange “are not securities and are not within the SEC’s jurisdiction.”
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