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Coinbase Claims Cryptocurrency on Its Platform is Not Securities

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Coinbase Claims Cryptocurrency on Its Platform is Not Securities

It is reported that according to the latest amicus curiae briefing submitted by Coinbase, the cryptocurrency exchange claimed that the cryptocurrency on its platform was not securities, and that Coinbase would also be willing to list securities products if the United States Securities and Exchange Commission gave appropriate guidance and regulations. Coinbase wrote in the briefing: “The United States Securities and Exchange Commission believes that digital assets are qualified as securities because they belong to investment contracts, but for encrypted assets, the legal term lacks two basic attributes. They are neither contracts nor investments.” (coindesk)

Coinbase: If the SEC makes rules, it is willing to list securities

Analysis based on this information:


In the latest amicus curiae briefing submitted by Coinbase, the cryptocurrency exchange claims that the cryptocurrency on its platform is not securities. This stance is in contradiction to the United States Securities and Exchange Commission (SEC), which believes that digital assets are qualified as securities because they belong to investment contracts.

In the briefing, Coinbase states that encrypted assets lack two fundamental attributes- they are neither contracts nor investments. The exchange claims that although the SEC has the power to regulate securities, it does not have the same power to regulate cryptocurrency.

Despite Coinbase’s claim, the SEC has maintained its stance that digital assets are securities subject to regulation. The commission has clarified that the Howey test, which is used to determine whether an asset is a security, applies to cryptocurrencies as well.

In its submission, Coinbase also stated that it would be willing to list securities products if the SEC gave appropriate guidance and regulations. With this statement, the exchange is sending a message to its investors that it is willing to work with regulators and comply with appropriate regulations.

Currently, the SEC has not yet provided clear guidance on the regulation of cryptocurrency in the US, causing uncertainty and confusion in the market. However, Coinbase’s willingness to work with regulators could be seen as a positive move towards enhancing regulatory compliance in the industry.

In conclusion, Coinbase’s latest amicus curiae briefing highlights the ongoing debate around the regulation of cryptocurrency in the US. While the SEC maintains that digital assets are securities subject to regulation, Coinbase argues that cryptocurrency on its platform is not securities. Nevertheless, Coinbase’s willingness to comply with regulations and work with regulators is a positive step towards building trust and transparency in the industry.

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