Cryptocurrencies have no intrinsic value. This comment came from a representative SEC during the hearings in the regulator’s case against Coinbase, writes Decrypt.
Following the hearing, the judge rejected the agency’s request for summary judgment. The motion comes in response to the platform’s call to dismiss the SEC’s lawsuit.
Then, citing the Howey test, the company explained that cryptocurrencies on the secondary exchange market are not part of any agreements under which the asset tied to the contract is sold. In addition, token issuers have no obligations to investors.
The SEC noted that many cryptocurrencies differ from each other only because they “in themselves have no intrinsic value.” The tokens cited in the lawsuit meet the criteria of the Howey test.
“If cryptoassets embody some underlying value, […] it is accessed via a digital token. But the latter is tied to its base value, which is an investment contract,” – the transcript says.
The platform’s general counsel, Paul Grewal, called the argument “the same thing, but in different words.”
“The SEC’s filings would mean that everything from Pokemon cards to Swiftie stamps and bracelets are also securities. How [член Палаты представителей Ричи Торрес] It’s clear made it clearthis is simply not in accordance with the law and should not be so,” — the top manager wrote.
The @SECgov just filed its opposition to our motion to dismiss their case against @Coinbase. It’s more of the same old same old. But don’t just take my word for it – take a look for yourself. 1/7 https://t.co/QMdkRoiq0V
— paulgrewal.eth (@iampaulgrewal) October 3, 2023
Grewal was supported by his colleague Stuart Alderoti from Ripple Labs.
“The SEC is so wrong in its position against Coinbase that I don’t know what to do. To begin with, the SEC asserts, without reference or argument, that digital assets have no intrinsic value, while collectible baseball cards do.” – he said.
There is so much wrong with the SEC’s brief in the Coinbase case I don’t know where to begin. Let’s start with the SEC claiming, without citation or support, that digital assets have no innate or inherent value while collectible baseball cards do.
— Stuart Alderoty (@s_alderoty) October 5, 2023
Previously, Coinbase recalled that over the years it has complied with all regulatory requirements and has repeatedly requested direct guidance from the SEC on the enforcement of federal securities laws in relation to the cryptocurrency industry.
In a separate filing, the exchange alleged a violation of its due process rights and a possible violation of the “essential issues” doctrine by the Commission. The company asked for a seven-week timetable for its petition, the regulator’s objection and its response to it.
Let’s remember that Coinbase refused to change its business model due to the Commission’s lawsuit.
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