Coinbase has filed a motion to dismiss the SEC’s lawsuit and has referenced the Hinman emails to highlight a regulatory gap and confusion regarding the rules in the crypto market. According to Coinbase, the tokens mentioned in the SEC’s complaint are not investment contracts and therefore do not qualify as securities. The exchange also argues that the SEC was aware of its listing processes and did not express any disapproval before filing the lawsuit. Coinbase’s motion also mentions Chairman Gary Gensler’s change in position on the regulator’s authority over crypto. The article also mentions attorney John Deaton’s views on the case, stating that the regulatory gap argument and Gensler’s previous acknowledgement of a lack of clear rules for the crypto assets ecosystem can strengthen Coinbase’s defense. The lawsuit centers around whether Coinbase sold assets as investment contracts, and Deaton points out that there have been no previous cases where a court declared assets purchased at the secondary market as investment contracts. However, Deaton acknowledges that the outcome of Coinbase’s motion is uncertain.
AI Sentiment: Neutral