On Friday, Coinbase is set to file a court order seeking the complete dismissal of the Securities and Exchange Commission’s lawsuit against the company. The SEC had accused Coinbase of violating securities laws earlier this summer.
Despite the allegations, Paul Grewal, the chief legal officer at Coinbase, expressed unwavering confidence in the arguments they presented to the court during an earnings call on Thursday.
“With respect to litigation with the SEC, I want to be very clear — we do think we can win, we expect to win,” Grewal said, adding that the exchange wants to work with the SEC and lawmakers to obtain “regulatory clarity.”
In June, the Securities and Exchange Commission (SEC) brought charges against Coinbase, citing various aspects of its business that were allegedly not compliant. These included failure to register as an exchange, broker, or clearing agency. Additionally, the crypto giant was charged for conducting the unregistered offer and sale of securities related to its staking-as-a-service program.
Coinbase’s CEO, Brian Armstrong, stated during the call that the company’s defense revolves around the argument that the SEC has not gone through formal rulemaking procedures but instead adopted a “regulation by enforcement approach.” This implies that the SEC is enforcing regulations on a case-by-case basis rather than establishing clear rules through formal channels.
“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,” Grewal said, adding that the company would be submitting a brief that will be taken into consideration at the end of October.