Coinbase Vs. Big Brother: Exchange Accuses SEC Of Trying To Kill Crypto

Source Bitcoinist

Coinbase, the leading US cryptocurrency exchange, is doubling down on its fight with the Securities and Exchange Commission (SEC), accusing the regulatory body of attempting to strangle the crypto industry through “regulation by enforcement.”

The SEC-Coinbase Acrimony

In a fiery appeal filed on May 31st, Coinbase paints a picture of the SEC as an innovation-squashing behemoth, prioritizing enforcement actions over establishing clear and fair guidelines for the growing digital asset space.

The crux of the dispute lies in the SEC’s lawsuit against Coinbase, initiated in June 2023. The SEC alleges Coinbase violated securities laws by failing to register as a broker or exchange.

Coinbase counters that the SEC’s existing regulations are ambiguous when applied to cryptocurrencies, making compliance a near-impossible feat.

This sentiment appears to be shared by some within the SEC itself. Commissioner Hester Pierce, a vocal advocate for clearer crypto regulations, recently proposed a collaborative sandbox program where US and UK blockchain firms could experiment with tokenized securities under defined parameters.

This initiative stands in stark contrast to the SEC’s current approach, which Coinbase likens to “wielding a sledgehammer to crack a walnut.”

The SEC, however, defends its stance. In its initial lawsuit against Coinbase, the agency argued that existing regulations are sufficient and their enforcement actions serve as a clear roadmap for the industry. They likely view the successful lawsuit as vindication of their approach.

Crypto’s Regulatory Crossroads

The outcome of the Coinbase appeal has the potential to be a watershed moment for the crypto industry. A win for Coinbase could force the SEC to the negotiating table, paving the way for a more collaborative regulatory framework.

Conversely, a victory for the SEC might solidify their enforcement-centric approach, potentially stifling innovation and pushing US crypto firms overseas to friendlier regulatory shores.

The larger political scene adds another level of intrigue. Both parties are starting to pay attention to the growing significance of cryptocurrencies in light of the upcoming presidential elections. While some legislators support encouraging innovation within a well-defined regulatory framework, others share the SEC’s apprehensions regarding possible hazards to investors.

The regulation of cryptocurrencies may not be settled in the future. Will the US adopt this technology and become a global center for cryptocurrency, or will strict enforcement spur innovation abroad?

Featured image from Midwest ENT, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
House GOP announces crypto week in Mid-July to review key billsThe US House GOP has designated the week of July 14 as "Crypto Week" to focus on key cryptocurrency legislation.
Author  Cryptopolitan
Jul 04, Fri
The US House GOP has designated the week of July 14 as "Crypto Week" to focus on key cryptocurrency legislation.
placeholder
Bitcoin volatility drops to third-lowest level since 2012 amid rise in BTC treasury companiesBitcoin (BTC) trades above $108,000 on Tuesday following a steady decline in its volatility in the first half of the year, marking the third-lowest H1 volatility since 2012.
Author  FXStreet
Yesterday 02: 11
Bitcoin (BTC) trades above $108,000 on Tuesday following a steady decline in its volatility in the first half of the year, marking the third-lowest H1 volatility since 2012.
placeholder
AUD/NZD inches higher to near 1.0900 as RBNZ maintains Official Cash Rate at 3.25%AUD/NZD holds ground after the Reserve Bank of New Zealand (RBNZ) decided to stand pat on the policy rate after six consecutive cuts, trading around 1.0890 during the Asian hours on Wednesday.
Author  FXStreet
Yesterday 03: 03
AUD/NZD holds ground after the Reserve Bank of New Zealand (RBNZ) decided to stand pat on the policy rate after six consecutive cuts, trading around 1.0890 during the Asian hours on Wednesday.
placeholder
Ethereum Price Turns Positive — More Upside Likely if Momentum HoldsETH is now consolidating gains and might aim for a fresh move above $2,620.
Author  NewsBTC
Yesterday 03: 26
ETH is now consolidating gains and might aim for a fresh move above $2,620.
placeholder
Gold price slides further below $3,300, over one-week low amid a firmer USDGold price (XAU/USD) trades with a negative bias below the $3,300 mark during the Asian session on Wednesday and drops to a one-and-a-half-week low in the last week.
Author  FXStreet
22 hours ago
Gold price (XAU/USD) trades with a negative bias below the $3,300 mark during the Asian session on Wednesday and drops to a one-and-a-half-week low in the last week.
goTop
quote