--- title: "Coinbase Seeks Dismissal of SEC Lawsuit Over Crypto Trading" url: https://diffcoin.com/coinbase-seeks-dismissal-of-sec-lawsuit-over-crypto-trading/ description: "Coinbase calls SEC lawsuit regulatory overreach, saying traded crypto tokens are commodities not securities, as it seeks case dismissal." published: 2023-10-24 updated: 2023-10-24 author: "Mila" site: "Diffcoin" --- # Coinbase Seeks Dismissal of SEC Lawsuit Over Crypto Trading #### Share this article Crypto exchange Coinbase is seeking to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC) accusing it of operating unregistered securities exchanges by facilitating the trading of digital tokens. In a court filing this week, Coinbase argued that the tokens traded on its platform are not securities and therefore fall outside the SEC’s jurisdiction. The company said the tokens do not meet the legal definition of “investment contracts” that would qualify them as securities requiring SEC registration. The lawsuit, filed by the SEC in July, alleged that Coinbase was operating as an unregistered securities exchange by providing a platform for customers to buy, sell, and trade digital asset securities. The regulator said several tokens listed on Coinbase met the definition of securities. Coinbase countered that the tokens are simple commodities, similar to a painting or baseball card, that people can trade hoping to profit from changing market prices. It said no ongoing contractual relationship or stake in a business enterprise exists with such trading. > “In the SEC’s conception, each sale and resale of the paintings on Etsy would be a securities transaction. Etsy would have to register with the SEC as a national securities exchange, and the artist would have to file expansive public disclosures about her art-selling activities,” Coinbase stated. The company also argued that the SEC was overreaching its authority and trying to regulate all commerce that involves investment. It said the major questions doctrine, which requires explicit Congressional authorization for agencies taking major regulatory actions, should apply to the SEC’s expansive interpretation of its powers. A federal judge will now decide whether to accept Coinbase’s motion and dismiss the SEC’s lawsuit. #### Share this article The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information. You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities. See full terms and conditions. [Source link](https://cryptobriefing.com/coinbase-seeks-dismissal-sec-lawsuit/?utm_source=feed&utm_medium=rss)