SEC Lawsuit Update: Coinbase Knew of Violations Before Legal Action, Says US Regulator
The United States Securities and Exchange Commission (SEC) has responded to Coinbase’s argument that it lacks jurisdiction in the ongoing lawsuit, stating that Coinbase was aware of its violations of federal securities laws for several years. According to CoinDesk, on July 7, 2023, the SEC announced its opposition to any motion for review filed by Coinbase and requested the court to dismiss Coinbase’s claims regarding the major questions doctrine and other concerns. The SEC had sued Coinbase a month ago, alleging that the company operated as an unregistered broker, clearinghouse, and exchange simultaneously.
In its filing, the SEC criticized Coinbase, emphasizing that as a multi-billion-dollar entity with legal counsel, Coinbase’s argument that it was unaware of violating securities laws seemed implausible. Furthermore, Coinbase suggested that the SEC had confirmed the legality of its business activities when it approved Coinbase’s registration statement in 2021. However, the SEC rejected this notion.
Meanwhile, Solana Labs, a prominent player in the cryptocurrency industry, is developing artificial intelligence (AI) tools to assist prospective non-fungible token (NFT) buyers. Solana Labs’ Head of Product, Tal Tchwella, highlighted the challenges faced by buyers in navigating the vast amount of data associated with NFT collections. The company aims to simplify the process by leveraging AI technology to help users identify and purchase NFTs that align with their specific preferences and needs. Tchwella emphasized the importance of AI in making NFT data accessible to newcomers, allowing them to discover collections and communities that resonate with their interests.
On a separate note, Australian officials have initiated an investigation into Binance, a prominent cryptocurrency exchange. The Australian Securities and Investments Commission (ASIC) has requested internal communications and data from both current and former employees of Binance. This move by Australian authorities follows similar legal challenges faced by Binance in various parts of the world, including accusations from US regulators, a raid in France, and a denial of licensing by the Dutch government.
As the cryptocurrency industry continues to evolve, regulatory scrutiny and the development of AI tools to enhance user experiences are emerging as significant trends. These recent developments underscore the importance of compliance with securities laws for cryptocurrency platforms and highlight efforts to simplify and streamline the process of NFT purchasing for a broader audience.
Also read this article: Adani Enterprises Acquires 30% Ownership in Trainman for INR 3.5 Crore
