Coinbase files motion on SEC lawsuit over abuse of power

Cryptocurrency exchange Coinbase has filed a motion on the SEC's lawsuit over "abuse of authority"

The cryptocurrency exchange said the regulator "violated due process, abused its authority, and abandoned its prior interpretations of the securities laws"

Cryptocurrency exchange Coinbase Aug. 4 filed a motion to dismiss the U.S. Securities and Exchange Commission's (SEC) lawsuit, saying the regulator overstepped its authority.

Coinbase also said the regulator "violated due process, abused its authority, and abandoned its prior interpretations of the securities laws."

The SEC filed a lawsuit against cryptocurrency exchange Coinbase on June 6 of this year. The regulator alleged that the platform operated as an unregistered broker. The suit also claimed that at least 13 tokens represented on the platform are in fact securities.

In the lawsuit against Coinbase SEC, the regulator called the tokens Solana (SOL), Cardano (ADA), Polygon (MATIC), Filcoin (FIL), Sandbox (SAND), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), NEAR Protocol (NEAR), Voyager VGX (VGX), Dash (DASH) and NEXO (NEXO) securities.

The cryptocurrency exchange's CEO Brian Armstrong said that the SEC had required cryptocurrency exchange Coinbase to stop trading in all cryptocurrencies except bitcoin even before the lawsuit was filed.

Coinbase Global is the largest crypto exchange in the United States and second after Binance among all centralized platforms. The company's capitalization as of August 4 is $21.3 billion.