Coinbase, facing SEC lawsuit, says regulator lacks police power over crypto


FILE PHOTO: A smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

NEW YORK (Reuters) - Coinbase, the largest U.S. cryptocurrency platform, said it will ask a judge to dismiss the U.S. Securities and Exchange Commission lawsuit claiming it broke the law by failing to register its business.

In a letter filed just before midnight on Wednesday in Manhattan federal court, Coinbase said the SEC has no authority to pursue civil claims because assets trading on its platform are not "investment contracts," and thus not securities.

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