{"id":170597,"date":"2023-10-09T04:30:23","date_gmt":"2023-10-08T23:00:23","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=170597"},"modified":"2023-10-09T04:30:23","modified_gmt":"2023-10-08T23:00:23","slug":"crypto-has-no-innate-or-inherent-value-sec-argues-in-coinbase-case-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/crypto-has-no-innate-or-inherent-value-sec-argues-in-coinbase-case-crypto-news\/","title":{"rendered":"Crypto Has \u2018No Innate or Inherent Value\u2019, SEC Argues in Coinbase Case – Crypto News"},"content":{"rendered":"
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The Securities and Exchange Commission is arguing that cryptocurrencies lack any “innate or inherent value” as part of their case against Coinbase in federal court\u2014prompting eye rolls from Coinbase and crypto watchers.<\/span><\/p>\n

In response to a <\/span>motion<\/span><\/a> to throw out the agency\u2019s lawsuit filed over the summer, the SEC petitioned a judge to reject Coinbase\u2019s stance that cryptocurrency trading does not count as an investment contract between parties. It justified its position by repeating its position that federal securities laws are designed to be interpreted flexibly through the legal doctrine known as the \u201c<\/span>Howey Test<\/span><\/a>.\u201d<\/span><\/p>\n

Under Howey, the SEC has argued for decades that investments ranging from whiskey caskets to chinchilla farms can be regulated as investment contracts. However, it says that many cryptocurrencies differ only because they “have no innate or inherent value” on their own\u2014whereas the tokens it cited in its lawsuit meet the criteria under Howey.\u00a0<\/span><\/p>\n

\u201cIf crypto assets embody some underlying value\u2026that value is accessed through the digital token,” the SEC wrote in its filing. “But the token… has no innate or inherent value of its own\u2014it is tied to its underlying value, which for the crypto assets at issue in this case, is the investment contract.\u201d<\/span><\/p>\n

But the SEC\u2019s arguments were brushed off by Coinbase\u2019s chief legal officer Paul Grewal, who dismissed their motion “<\/span>more of the same old same old<\/span><\/a>” position.<\/span><\/p>\n

“The SEC\u2019s arguments today would mean that everything from Pokemon cards to stamps to Swiftie bracelets are also securities,” Grewal wrote. “As [New York congressman Rep. Ritchie Torres] made so clear last week, that is simply not the law, nor should it be.”<\/p>\n

He was referring to Rep. Torres\u2019 questioning of Gary Gensler<\/a> at a House Financial Services Committee hearing last month.<\/p>\n

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The @SECgov<\/a> just filed its opposition to our motion to dismiss their case against @Coinbase<\/a>. It\u2019s more of the same old same old. But don\u2019t just take my word for it \u2013 take a look for yourself. 1\/7 https:\/\/t.co\/QMdkRoiq0V<\/a><\/p>\n

\u2014 paulgrewal.eth (@iampaulgrewal) October 3, 2023<\/a><\/p>\n<\/blockquote>\n<\/div>\n

Stuart Alderoty, the chief legal officer for Ripple Labs\u2014which won a <\/span>partial victory<\/span><\/a> against the SEC in July after being sued\u2014also took to Twitter <\/span>to ridicule<\/span><\/a> the SEC’s argument.<\/span><\/p>\n

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There is so much wrong with the SEC\u2019s brief in the Coinbase case I don\u2019t know where to begin. Let\u2019s start with the SEC claiming, without citation or support, that digital assets have no innate or inherent value while collectible baseball cards do.<\/p>\n

\u2014 Stuart Alderoty (@s_alderoty) October 5, 2023<\/a><\/p>\n<\/blockquote>\n<\/div>\n

\u201cThere is so much wrong with the SEC\u2019s brief in the Coinbase case I don\u2019t know where to begin,” wrote Alderoty on Thursday. “Let\u2019s start with the SEC claiming, without citation or support, that digital assets have no innate or inherent value while collectible baseball cards do.\u201d<\/span><\/p>\n

As part of its June 6 lawsuit against Coinbase, the SEC listed several altcoins it labeled unlicensed securities, including Solana, MATIC, and Cardano. The developers for these tokens<\/span> have balked<\/span><\/a>\u00a0at this designation, and Coinbase has rebuked the charges against it.\u00a0<\/span><\/p>\n

The question of cryptocurrencies\u2019 value has been asked since the earliest days of the technology. Unlike fiat currency like the U.S. dollar, tokens do not have the legal backing of a government entity, and ones like <\/span>Bitcoin<\/span><\/a> were designed to exist apart from a central authority. Instead, tokens\u2019 value is mostly determined by the market forces of supply and demand.<\/span><\/p>\n

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Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Securities and Exchange Commission is arguing that cryptocurrencies lack any “innate or inherent value” as part of their case against Coinbase in federal court\u2014prompting eye rolls from Coinbase and crypto watchers. In response to a motion to throw out the agency\u2019s lawsuit filed over the summer, the SEC petitioned a judge to reject Coinbase\u2019s […]<\/p>\n","protected":false},"author":2,"featured_media":170598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-170597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/170597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=170597"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/170597\/revisions"}],"predecessor-version":[{"id":170600,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/170597\/revisions\/170600"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/170598"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=170597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=170597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=170597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}