Coinbase has filed a response to the Securities and Exchange to get an enforcement action against the exchange dismissed, arguing that the tokens don’t necessarily represent the definition of an investment contract.
“As the SEC now would have it, an investment contract exists if someone parts with capital and expecting that her purchase will increase in value,”. “The SEC proposes this departure from precedent in the service of a radical expansion of its own authority. It claims authority over essentially all investment activity—and thus the right to define its own regulatory ambit, constrained only by its own ambition.
“Were the SEC’s position accepted, countless software-driven services would be securities. That would be another radical expansion of SEC authority with no grounding in precedent,” the exchange wrote in its filing.