Coinbase, a major crypto exchange blamed the Securities and Exchange Commission for destroying the crypto market through its hard-handed approach.
The United States Securities and Exchange Commission (SEC) was under attack by one of the world’s largest crypto exchanges Coinbase during a legal battle in U.S. Courts of Appeals.
Coinbase blasted the crypto regulator saying that the crypto regulatory authority would continue its regulation-by-enforcement approach to the cryptocurrency industry for as long as it can to satisfy its goal of “choking” the industry.
During the filing on May 31, Coinbase had alleged, “The Securities and Exchange Commission is serious about the destruction of digital assets,”.
The Securities and Exchange Commission, however, argued that Coinbase doesn’t seem willing to come to the table to establish clear and fair guidelines. It further added, ” Giving Coinbase further opportunity to explain itself is both pointless and exquisitely undeserved”.
Coinbase allegations
Coinbase’s CLO Paul Grewal stated that the Securities and Exchange Commission doesn’t care about the crypto industry’s ability to comply with rules. It is hell-bent on choking the digital asset industry by not providing the rules requested by the industry.
The allegations sound that the Securities and Exchange Commission is acting against the crypto market. It requested the court to take the word of other Securities and Exchange Commission Commissioners instead of theirs. They blamed the Securities and Exchange Commission for hindering the digital asset industry and welcoming the extinction of new technology.
Coinbase further claimed, “The Securities and Exchange Commission tries to minimize its oppressive stance by asserting that only a “small set of market participants” “may” experience “compliance difficulties” under “discrete provisions” of existing rules,”
SEC allegations
The Securities and Exchange Commission, on the other hand, alleged that Coinbase has never registered as a broker, national securities exchange, or clearing agency, evading the disclosure scheme for securities markets.
The Securities and Exchange Commission initiated the lawsuit against Coinbase in June 2023.
Effect on the Crypto Market?
Legal Experts favor Coinbase in this current legal battle.
Bloomberg senior litigation analyst forecasted a 70% chance of the exchange securing a full dismissal in the ongoing lawsuit.
The legal outcome might be in favor of Coinbase or not, only time will tell but this will certainly establish the Securities and Exchange Commission as a pro or against crypto in the eyes of crypto community throughout the world.
Also Read: Ripple CLO Challenges SEC’s Remedies Request in XRP Lawsuit
