Coinbase files motion citing Binance ruling
Coinbase has filed a motion with Judge Katherine Polk Failla, drawing parallels to a recent decision by Judge Jackson in the SEC vs. Binance litigation. This referenced verdict dismissed the SEC's assertion that transactions involving Binance’s native token, BNB, in the secondary market constituted investment contracts.
In this new legal argument, Coinbase points out the resemblances with the Binance case, which also tackled the issue of purported unauthorized securities sales. The SEC has similarly accused Coinbase of engaging in the sale of unregistered securities and functioning without the proper registration as an exchange, broker, and clearing agency.
On a recent Friday, Judge Jackson refuted the SEC’s attempt to categorize BNB secondary market transactions as securities, a decision Coinbase believes is significant. According to Coinbase, this ruling underscores the existing divergence in legal interpretations regarding whether transactions in cryptocurrencies fall under the definition of securities transactions.
Two respected district courts, having examined essentially the same transactions across two major U.S. cryptocurrency platforms, have arrived at fundamentally conflicting conclusions regarding the potential classification of those transactions as securities transactions.
Coinbase criticizes the SEC’s piecemeal enforcement against digital currency entities, which results in fragmented rulings and ambiguity in regulatory expectations across the sector.
Coinbase stated that the SEC's piecemeal approach to regulating the cryptocurrency industry through enforcement leads to a scenario where market participants are subjected to varying regulations, not just within this jurisdiction but across multiple federal jurisdictions.
By pushing for an appellate examination of the SEC's lawsuit against it, Coinbase aims to seek judicial clarity on the application of securities laws to digital assets, potentially setting a precedent for the entire industry.
