Key Takeaways:
- Coinbase claims the SEC is “choking” the crypto industry through regulation-by-enforcement, avoiding clear guidelines and meaningful dialogue.
- SEC Commissioner Hester Pierce suggests a cross-border sandbox for blockchain firms, criticizing the SEC’s approach as harmful to the industry.
- The legal battle began in June 2023 when the SEC sued Coinbase for not registering as a broker or securities exchange, with Coinbase failing to dismiss the case.
The United States Securities and Exchange Commission (SEC) is intensifying its regulatory actions against the cryptocurrency industry, as stated by Coinbase in a recent court filing.
Coinbase accuses the SEC of aiming to “choke” the digital assets industry through a regulation-by-enforcement approach.
Remarkably, the SEC’s says – over and over again – that it doesn’t matter if the industry can comply with the rules. The SEC is bent on choking the digital asset industry, and is refusing to provide the necessary rules the industry has requested in order to tighten the squeeze.…
— paulgrewal.eth (@iampaulgrewal) May 31, 2024
The exchange argues that the SEC is not interested in establishing clear and fair guidelines for the industry, citing a reluctance to engage in meaningful dialogue.
Coinbase criticizes the SEC for not facilitating compliance and for believing its rules are sufficient based on past enforcement actions.
Additionally, other SEC Commissioners, like Hester Pierce, share the view that the SEC’s actions are detrimental to the industry.
Pierce has suggested a cross-border sandbox program for blockchain firms as a potential solution.
COINBASE SLAMS SEC IN LATEST FILING – “THIS PATTERN OF CONDUCT IS A PURPOSEFUL EFFORT TO DESTROY AN INDUSTRY”
— BSCN (@BSCNews) May 31, 2024
– In a 36-page brief filed today, @Coinbase has savagely critiqued the US Securities and Exchange Commission for its approach to the cryptocurrency industry.
– The… https://t.co/S0fnV59FSq pic.twitter.com/6SPoGjdfc4
The SEC has downplayed its strict stance by claiming that only a small portion of the industry faces compliance issues.
This legal battle began in June 2023 when the SEC sued Coinbase for not registering as a broker or securities exchange.
Despite attempts to dismiss the case, Coinbase has not succeeded.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
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