Illustration by Alex Castro / The Verge
Coinbase is asking a judge to dismiss the Securities and Exchange Commission’s lawsuit against it. In a motion filed on Friday, Coinbase maintains that it doesn’t trade securities, rendering the SEC’s arguments invalid.
The SEC sued Coinbase in June, alleging that the crypto exchange broke securities laws by operating as an unregistered broker, exchange, and clearing agency. It also accused the company of selling unregistered securities through its staking-as-a-service program, which rewards users with crypto by participating in the proof-of-stake process on the blockchain.
By ignoring that precedent, the SEC has violated due process, abused its discretion, and abandoned its own earlier interpretations of the securities laws. By…