Coinbase Accuses SEC of Strangling Crypto Industry with Rigid Regulations
Summary:
The US Securities and Exchange Commission (SEC) persists with its stringent regulatory approach towards the crypto industry, aiming to limit its growth, as per Coinbase. The crypto platform, in its legal efforts to impel the SEC to devise clear rules for the sector, states that the SEC is unwilling to assist in formulating such guidelines. Coinbase additionally points out the SEC's view that its strict regulations affect only a minor segment of the industry. The SEC's lawsuit against Coinbase in June 2023, alleging non-compliance with registration requirements, failed to get dismissed, contrary to industry and expert expectations.
The US Securities and Exchange Commission (SEC) remains committed to its prevailing enforcement-based approach towards the cryptocurrency sector with the aim to stifle it, as stated by cryptocurrency platform Coinbase. In a regulatory filing on May 31 with the US Court of Appeals, Coinbase communicated that the SEC is unwavering in its pursuit to cripple digital assets. It is part of Coinbase's ongoing legal efforts to urge the court to compel the SEC to establish just and transparent regulations for the crypto domain.
However, Coinbase contends that the SEC doesn't appear to be open to discussions that would lead to establishing such guidelines. The exchange expresses the belief that further attempts to have the SEC clarify its position are futile and unmerited.
In this discourse, Coinbase asserts that the SEC does not see the necessity of making compliance with their rules achievable. They believe that their existing regulations are sufficiently effective, a point illustrated by previous lawsuits against multiple industry players for rule violations.
Coinbase urges the court to consider not only its perspective, but also the views of several SEC commissioners who agree that the SEC's actions stymie the growth of the digital asset industry. They warn against the potential demise of emerging tech.
Coinbase also pointed out that the SEC attempts to downplay their stringent regulatory stance, asserting that their rules may only pose problems for a minute fraction of the industry. The SEC justifies its regulatory rigidity by claiming it affects only a 'small set of market participants' experiencing 'compliance difficulties' with specific provisions of existing laws.
The war between the SEC and Coinbase began when the SEC launched a lawsuit in June 2023, accusing Coinbase of not registering as a broker, a national securities exchange, or a clearing agency; thus, circumventing the securities market disclosure system. While Coinbase fought to get the case dismissed, the SEC continually repelled their efforts. Despite rising expectations from the crypto sector and legal insiders that Coinbase would get the lawsuit dismissed, the result was unfavorable.
As reported on January 21 by Cointelegraph, Bloomberg's senior legal analyst, Elliott Stein, anticipated a 70% probability for Coinbase gaining a complete dismissal in the lawsuit after observing a hearing.
Published At
6/2/2024 5:13:58 AM
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