SEC Crushing Crypto: Coinbase, an American cryptocurrency exchange, recently filed a lawsuit accusing the US Securities and Exchange Commission (SEC) and its chairman, Gary Gensler, of trying to stifle the cryptocurrency business. Both of them have been the targets of substantial claims made by Coinbase.
This filing came amid a continuing legal battle between Coinbase and the SEC, which claims that Coinbase sold “securities” (commodities) without first registering them. You can buy and sell cryptocurrencies on Coinbase.
Coinbase Challenges SEC’s ‘Inconsistent Legal Claims
According to Coinbase’s report on Friday, the number of enforcement actions taken by the SEC has been increasing over the past few months. It seems like someone is trying to ruin the digital asset industry. The exchange continued its campaign of repression against the company by claiming that the SEC had presented “inconsistent and unsupportable” legal claims. If Coinbase is believed, the SEC is utilizing regulations as “weapons” to crush businesses that do not support it. The government’s agenda rather than fulfilling its duty to facilitate rule compliance.
Coinbase disputes the SEC’s assertions, stating that rulemaking is required by existing legislation. The exchange asserts that the SEC attempts to influence its rules by issuing punitive enforcement actions within its “unlawful” authority. The digital asset market. With the SEC’s new stance on digital assets revealed in its most recent brief, the exchange continues by claiming that the agency’s earlier invitation to digital asset companies to “come in and register” was an elaborate farce.
Ripple Effects Across Cryptocurrency Exchanges
The legal battle between Coinbase and the SEC has garnered much attention. The regulator initially sued Coinbase in June, claiming that the firm was an “unregistered broker and exchange.” According to US District Judge Katherine Polk Failla, who upheld the SEC’s position in March. The relevant transactions fell within the courts’ boundaries to evaluate if assets are securities.
Binance and Coinbase are among the significant cryptocurrency exchanges that this ruling will impact. The SEC’s ongoing action against Binance now includes a notice of Failla’s decision. Claiming to have sold crypto asset securities without proper registration, Binance is the defendant in this complaint. The spat between Coinbase and the SEC exemplifies the more significant regulatory hurdles the bitcoin industry faces.
Because there aren’t clear standards or regulations, the company’s future is cloudy, and expansion has been slow. Industry insiders agree that the digital asset market needs a court order directing. The SEC should start regulating to establish order and transparency.
The result of the current legal dispute will almost certainly have far-reaching consequences for Coinbase and the Bitcoin industry overall. Not only will it affect the destiny of the US sector, but it will also shape the terrain of legislation you’ll face.
