The SEC stated that cryptocurrencies have no intrinsic value.
Cryptocurrencies have no intrinsic value. This comment was made by an SEC representative during a hearing in the regulator’s case against Coinbase, Decrypt writes. Following the hearing, the judge rejected the agency's request for summary judgment. The motion comes in response to the platform's call to dismiss the SEC's lawsuit. Then, citing the Howey test, the company explained that cryptocurrencies on the secondary exchange market are not part of any agreements under which the asset tied to the contract is sold. In addition, token issuers have no obligations to investors.
The SEC noted that many cryptocurrencies differ from each other only because they “in themselves have no intrinsic value.” The tokens cited in the lawsuit meet the criteria of the Howey test. “If cryptoassets embody some underlying value, […] it is accessed through a digital token. But the latter is tied to its underlying value, which is the investment contract,” the transcript says. The platform's general counsel, Paul Grewal, called the argument "the same thing, but in different words."“The SEC's filings would mean that everything from Pokemon cards to Swiftie stamps and bracelets are also securities. As [Rep. Ritchie Torres] has made clear, this is simply not in accordance with the law and should not be so,” the executive wrote.
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Cryptocurrencies have no intrinsic value. This comment was made by an SEC representative during a hearing in the regulator’s case against Coinbase, Decrypt writes. Following the hearing, the judge rejected the agency's request for summary judgment. The motion comes in response to the platform's call to dismiss the SEC's lawsuit. Then, citing the Howey test, the company explained that cryptocurrencies on the secondary exchange market are not part of any agreements under which the asset tied to the contract is sold. In addition, token issuers have no obligations to investors.
The SEC noted that many cryptocurrencies differ from each other only because they “in themselves have no intrinsic value.” The tokens cited in the lawsuit meet the criteria of the Howey test. “If cryptoassets embody some underlying value, […] it is accessed through a digital token. But the latter is tied to its underlying value, which is the investment contract,” the transcript says. The platform's general counsel, Paul Grewal, called the argument "the same thing, but in different words."“The SEC's filings would mean that everything from Pokemon cards to Swiftie stamps and bracelets are also securities. As [Rep. Ritchie Torres] has made clear, this is simply not in accordance with the law and should not be so,” the executive wrote.
#CryptoNews #cryptocurrency #Crypto2023 #Crypto