--- title: "State Regulators Back SEC in Coinbase Lawsuit" url: https://diffcoin.com/state-regulators-back-sec-in-coinbase-lawsuit/ description: "NASAA files brief supporting SEC position that digital assets on Coinbase are securities and rejects bid to narrow Howey test." published: 2023-10-11 updated: 2023-10-11 author: "Mila" site: "Diffcoin" --- # State Regulators Back SEC in Coinbase Lawsuit #### Share this article The North American Securities Administrators Association (NASAA) has filed a brief supporting the Securities and Exchange Commission (SEC) in its lawsuit against crypto exchange Coinbase. NASAA, a non-profit association representing state and provincial securities regulators in the US, Canada, and Mexico, said it has a “strong interest” in the outcome of the case. In the brief, filed today, NASAA argues that the SEC’s position – that some crypto assets on Coinbase are securities and therefore subject to SEC regulation – is consistent with longstanding securities laws. > “The SEC’s theory in this case is consistent with the agency’s longstanding public position, the positions advanced by state securities regulators, and even the understanding of digital asset issuers,” the brief states. The brief rejects Coinbase’s attempt to narrow the definition of a security. It argues that the decades-old Howey test for determining whether an asset is a security should apply to crypto. > “The Court should decline to rewrite the Howey test to allow digital asset enterprises to evade regulatory oversight,” the brief says. In June, securities regulators in ten states initiated enforcement actions alleging Coinbase was offering and selling its staking program, which allows customers to earn rewards for holding crypto, as an unregistered security. The lawsuit alleges that Coinbase allowed trading of digital assets that qualify as securities without registering as a national securities exchange. The SEC contends this includes at least nine tokens listed on Coinbase. The high-profile case could have significant implications for the regulation of the crypto industry. A ruling in favor of the SEC would likely subject many digital assets and related products and services to stricter oversight. #### 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/state-regulators-back-sec-coinbase-lawsuit/?utm_source=feed&utm_medium=rss)