Coinbase Takes a Bold Stance
SEC sued Coinbase in early June, accusing it of trading unregistered securities.
SEC's argument: These cryptos are investment contracts, hence securities.
Coinbase filed a bold response to the lawsuit.
The cryptos on their platform are NOT investment contracts.
Therefore, they're NOT securities.
But they didn't just stop there.
In the response, they explained that the cryptos aren't tied to any contract where a promoter is selling an asset.
Coinbase alleged that even if SEC had some power over crypto, the lawsuit still goes against their Due Process Rights.
In simpler terms, they're saying that this whole lawsuit is just an abuse of the system. In another document, Coinbase claimed that their due process rights were violated by the lawsuit.