Coinbase asserts that it does not engage in securities trading, making the SEC’s lawsuit invalid and warranting dismissal.

Coinbase is requesting the dismissal of the Securities and Exchange Commission’s lawsuit against it. In a motion filed on Friday, Coinbase argues that it does not engage in securities trading, thus invalidating the SEC’s claims.

The SEC filed a lawsuit against Coinbase in June, alleging that the cryptocurrency exchange violated securities laws by operating as an unregistered broker, exchange, and clearing agency. It also accused the company of selling unregistered securities through its staking-as-a-service program, in which users are rewarded with cryptocurrency for participating in the proof-of-stake process on the blockchain.

However, Coinbase rejects the SEC’s arguments, asserting that the case “falls outside the agency’s delegated authority” because the platform does not offer securities. Coinbase has consistently maintained this position, as stated by Paul Grewal, the company’s chief legal officer, in a blog post last year: “Coinbase does not list securities. End of story.”

In a tweet announcing Coinbase’s motion to dismiss, Grewal argues that “the SEC has violated due process, abused its discretion, and abandoned its own earlier interpretations of the securities laws,” emphasizing that the “SEC has trampled the strict boundaries on its basic authority set by Congress.”