The U.S. Securities and Exchange Commission (SEC) is pushing back against Coinbase's efforts to dismiss the regulator's lawsuit. Coinbase had previously claimed that the SEC had overstepped its authority and misused its discretion by alleging that the digital assets offered on its platform were unregistered securities.

The SEC is determined to continue its legal action against the leading cryptocurrency exchange in the United States. On Tuesday, the SEC requested that a federal judge reject Coinbase's attempts to have the Commission's lawsuit dismissed.

In its legal filing from early June, the SEC accused Coinbase of circumventing its regulations for years and violating various securities laws by operating an unregistered exchange, brokerage, and clearing agency. This lawsuit came after the SEC filed a similar suit against Binance, the world's largest crypto exchange, on similar grounds.

In August, Coinbase asked the court to dismiss the SEC's case, arguing that the agency had exceeded its statutory authority, abused its discretion, and departed from its own previous interpretations of U.S. securities laws.

In an October 3 filing quoted by Bloomberg, the SEC introduced new arguments to support its case. It claimed that public statements made by issuers, many of which were echoed by Coinbase, led investors, including those on Coinbase's platform, to reasonably expect profits from the efforts of these issuers. The SEC also dismissed Coinbase's view that crypto asset sales on secondary market platforms are not investment contracts as "unsupported and nonsensical."

Coinbase's Chief Legal Officer, Paul Grewal, responded to the SEC's latest arguments by saying, "It's more of the same old." In a post on X (formerly Twitter), he indicated that the company would provide a response later in October, reiterating Coinbase's position that it does not offer securities and calling for new crypto-specific regulations from the SEC.

Many within the industry and beyond are eagerly awaiting the outcome of this lawsuit to determine the extent of the SEC's jurisdiction over crypto assets. Under the leadership of Chair Gary Gensler, the Commission has maintained that most digital tokens fall under its regulatory purview and that trading platforms should be registered with it. Other high-profile cases include the SEC's legal battle with Ripple, which recently saw a positive development in Ripple's favor.