Coinbase’s own public filings also note that one potential risk to Coinbase investors include the fact that listed assets might be considered securities.
“These actions clearly show that Coinbase understood that the securities laws could apply to its conduct and knew which rules to consider in evaluating the legality of its conduct, but nevertheless made the calculated decision to take on this risk in the name of growing its business,” the filing said.
The SEC also previewed its arguments pushing back against Coinbase’s proposed motion for judgement, saying the crypto exchange made two “equally flawed arguments.”
Source: Coinbase Knew It May Have Been Violating the Law Prior to the SEC’s Lawsuit, Regulator Claims
