As cryptocurrencies continue to mature in the United States, the Securities and Exchange Commission has faced increased pressure to provide regulatory clarity. An expert legal analyst recently argued that should the SEC decide to sue Coinbase exchange, it may not achieve the desired result, as Chairman Gary Gensler clearly indicated in his most recent testimony to Congress that the commission does not have power to regulate crypto trading platforms.
The legal analyst, MetaLawMan, maintained that only Congress has the authority to set the regulations on crypto trading platforms. According to MetaLawMan, Coinbase will likely analyze all prior communications between the exchange and the SEC prior to Gensler's testimony, and prove that the SEC was aware of its lack of power to regulate the platform.
The SEC has taken legal actions against several crypto platforms in the past; Kraken is a notable example, as it was fined $32 million for offering staking as a service and for compliance breaches. Coinbase on its part has counter-sued the SEC for its lack of clearly defined guidelines in the crypto sector.
The crypto community has offered its full support to Coinbase, although the validity of the suit is still in question. This goes to show how much the industry wants to see the SEC provide clear regulatory parameters for the industry to eliminate any grey areas and protect investors.
Yana Long
- 2023-05-04
Coinbase Exchange at Risk of Non-Regulation By SEC
The Securities and Exchange Commission faces increased pressure to provide regulatory clarity for cryptocurrencies in the United States which Coinbase Exchange may analyze to prove SEC's lack of power to regulate the platform.
