Coinbase, a leading crypto exchange, is doing something daring. The platform disagrees with a lawsuit the US SEC filed against it. However, Coinbase revealed its intentions to submit a request for the dismissal of the SEC lawsuit.
In a complaint filed on June 6, the SEC alleged that Coinbase is an unregistered exchange and sold unregistered securities. In reply to the allegations, the exchange declared its plan to submit a motion seeking the dismissal of the lawsuit on August 4th.
Confliction over whether digital assets are legal or not is a result of the lack of clear regulations. Grewal gave an example of how Commodity Futures Trading Commission Chair Rostin Behnam and SEC Chair Gary Gensler had different opinions about Ethereum (ETH).
During a Senate hearing in March, Behnam classified ETH as a commodity. Meanwhile, Gensler has previously said that, aside from BTC, he considers all cryptocurrencies to be securities. Crypto investors are overseeing this situation because its outcome could impact activities.
Coinbase’s Financial Report For Q2
Coinbase disclosed its financial report for Q2 on Thursday. This is the first disclosure since the SEC brought legal action. Coinbase reported a per-share loss of 42 cents.
Moreover, subscription earnings reached $335M. It shows a 7% decrease compared to the previous quarter. Transaction revenue mounted to $327M. Last quarter, subscription revenue was $362M. However, transaction revenue was $375M.
Crypto Exchange Claims To Be Successful
Grewal is confident and stressed that the company did not put securities on its platform. Additionally, he said SEC does not control crypto companies properly. He points out that when the SEC approved Coinbase’s registration statement in April 2021, there was no indication that Coinbase needed to register differently.
As Coinbase prepares to ask for dismissal, the crypto industry is eagerly awaiting the outcome. Notably, the approaches to control exchanges could change in the future.
Grewal said the exchange aims not just to win the case. However, the company also wants regulatory clarity by discussing with the US government with the SEC.
“Regardless of any particular outcome on any motion or any court case, clarity itself is the goal.”