Crypto trade Coinbase is looking for to push aside a lawsuit filed through the Securities and Trade Fee (SEC) accusing it of running unregistered securities exchanges through facilitating the buying and selling of virtual tokens.

In a courtroom submitting this week, Coinbase argued that the tokens traded on its platform don’t seem to be securities and due to this fact fall out of doors the SEC’s jurisdiction. The corporate mentioned the tokens don’t meet the criminal definition of “funding contracts” that may qualify them as securities requiring SEC registration.

The lawsuit, filed through the SEC in July, alleged that Coinbase used to be running as an unregistered securities trade through offering a platform for patrons to shop for, promote, and business virtual asset securities. The regulator mentioned a number of tokens indexed on Coinbase met the definition of securities.

Coinbase countered that the tokens are easy commodities, very similar to a portray or baseball card, that individuals can business hoping to take advantage of converting marketplace costs. It mentioned no ongoing contractual dating or stake in a industry undertaking exists with such buying and selling.

“Within the SEC’s conception, each and every sale and resale of the art work on Etsy can be a securities transaction. Etsy must check in with the SEC as a countrywide securities trade, and the artist must document expansive public disclosures about her art-selling actions,” Coinbase said.

The corporate additionally argued that the SEC used to be overreaching its authority and looking to control all trade that comes to funding. It mentioned the foremost questions doctrine, which calls for specific Congressional authorization for companies taking main regulatory movements, will have to observe to the SEC’s expansive interpretation of its powers.

A federal pass judgement on will now make a decision whether or not to simply accept Coinbase’s movement and push aside the SEC’s lawsuit.