Coinbase, the largest cryptocurrency exchange in the United States, has filed a motion to dismiss a lawsuit filed against it by the Securities and Exchange Commission (SEC). The SEC accuses Coinbase of failing to register its staking-as-a-service product, which they consider a security, and of denying investors important information about the program. Coinbase argues that the SEC violated due process, abused its discretion, and ignored the true definition and application of the Howey Test. The exchange also states that crypto assets fall outside the SEC’s delegated authority. Additionally, Coinbase insists that it should not be considered a broker just because it offers free wallet software for users.

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