Paul Grewal confirmed that the Coinbase team will file a motion against the SEC’s charges to dismiss the case.
Coinbase is a US-based highly compliant crypto platform. Coinbase crypto services are the top choice for retail & institutional crypto Investors over other company’s services in the US. In June of this year, the United States Securities Exchange Commission (SEC) sued Coinbase over providing unregistered securities offerings & running an illegal national exchange.
On 3 August, During the Q2 2023 calls, Coinbase chief legal officer Paul Grewal said that the company is fully confident that it will win the legal fight against the SEC body.
“Concerning the litigation with the SEC, I want to be very clear. We do think we can win. We expect to win,” Mr. Grewal said.
Grewal confirmed that the Coinbase team will file a motion in the court to dismiss all the SEC’s charges and also said that the Coinbase lawyers will provide all the facts to make sure that the Coinbase exchange always followed rules & regulations perfectly.
According to the Coinbase chief legal officer, the SEC body never guided the Coinbase exchange about the rules to follow and also they have no authority to regulate the crypto sector.
The Coinbase representative will provide all these facts in court to dismiss the SEC’s suit.
Furthermore, Grewal confirmed that Coinbase will not only fight against the SEC’s charges but also will try to bring clarity to the crypto rules.
According to Grewal the US financial regulators are themselves not able to understand the laws applicability to the crypto sector, as several times SEC & CFTC passed statements over the nature of the same Crypto asset but opposite to each other.
Lawsuit & Impact
Because of the SEC’s suit, the crypto trade volume on the Coinbase platform plunged from $145 billion to $92 billion ( from Q1 to Q2).
Coinbase’s trading revenue plunged to $327 million from $375 million.
Through the Q2 earning report, Coinbase confirmed that the company faced a $97 million net loss on $709 million in revenue for the second quarter.