June 29 (Cointime) - Coinbase has filed a court document stating that the SEC lacks proper jurisdiction to retroactively regulate digital asset exchanges. The document argues that only Congress has the power to regulate digital assets and that there have been no changes to Coinbase's business that would warrant the SEC's action. Coinbase also points out that the staking service the SEC claims is in violation of the Securities Act of 1933 has been offered since at least 2012.

Despite voluntarily subjecting itself to U.S. government regulation, Coinbase has faced legal action from both the SEC and state regulators targeting its staking services. The company claims to have established a systematic analytical process for reviewing crypto assets and screening out those that could be deemed securities under the SEC's definition.