TechFlow reported, according to The Block, that in response to the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in June alleging that Coinbase operated as an unregistered securities exchange, broker, and clearing agency, Coinbase has submitted a reply brief arguing that "the New York judge should dismiss this case, as the SEC's allegations exceed its jurisdictional authority."
In its filing, Coinbase stated, "Because the SEC’s complaint does not—and cannot—allege that the simple asset transactions it identifies involve ongoing contractual obligations tied to an enterprise, Coinbase is entitled to judgment on the pleadings. Furthermore, the SEC’s assertion that any purchase where a buyer hopes to gain value constitutes an investment contract, and therefore a security, represents an attempt to fundamentally expand its own power. As the major questions doctrine makes clear, when an agency seeks to decide issues of vast economic and political significance, it must have clear congressional authorization. Expanding federal securities laws falls within Congress’s legislative domain."
