Coinbase insists that so long as Binance’s BNB is not a security, its case should not be any different.
Coinbase may have taken its legal battle with the US Securities and Exchange Commission (SEC) a notch higher. This follows a recent motion that the exchange filed in court. According to an X post by the firm’s Chief Legal Officer Paul Grewal, the motion is simply a pointer for Judge Katherine Polk Failla, who presides over the case, to take a cue from a similar case between the SEC and Binance.
It’s important to mention that Judge John P. Jackson, in a recent ruling last Friday, dismissed the SEC’s claim that secondary market transactions of Binance’s native token, BNB, were investment contracts and, thus, securities.
Coinbase argues that their case presents similar issues. The SEC is accusing it of selling unregistered securities and operating without proper licensing for exchange, brokerage, and clearing activities.
Coinbase Asks Judge to Rethink Security Label, Urges Uniformity in Legal Declarations
Meanwhile, Coinbase has also called out what it sees as a confusing and unclear legal environment. This view borders on the reality on the ground, which sees different courts come out with different decisions. That is, even in such cases that bear striking resemblance to one another. According to the firm, this lack of uniformity brings nothing but inconsistent results. The filing also noted how the SEC is focused on “case-by-case enforcement” rather than establishing clear guidelines for the industry. This lack of clarity, the exchange believes, is hindering the growth of the crypto industry. An excerpt from the filing reads:
“The result of the SEC’s litigation-focused approach to crypto regulation is that market participants now face different rules, not only in different courts in this District, but in different federal courts around the country.”
Seeks Clarity through Appellate Review
The filing by Coinbase seeks an appellate review of the SEC’s case against it. It hopes that this can help it get a more definitive ruling on how securities laws apply to crypto assets. Coinbase insists that so long as Binance’s BNB is not a security, its case should not be any different. A clear decision from the Coinbase and SEC case is expected to serve as legal precedent and have far-reaching implications on the crypto industry at large.
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