The battle between Coinbase, the leading crypto exchange platform, and the Securities and Exchange Commission (SEC) heated up this Monday, with Coinbase's CEO, Brian Armstrong, offering his opinion about the US regulator's approach to crypto regulations. The exchanges' chief legal officer Paul Grewal stated that the SEC have seemingly taken a negative stance on Coinbase's request for rulemaking on digital asset regulations, in their July 2022 petition. The current conflict between the two parties has been taken to the Third Circuit Court of Appeals, with the regulator handing a verdict simultaneously instructing the SEC to answer to Coinbase's complaint within the following ten days.
Brian Armstrong commented on the situation by saying that the SEC is taking a divergent stance on crypto regulation, being seen as „a lone crusade” by chairman Gary Gensler. At the same time, Armstrong pointed out that this situation offers an opportunity for clarity as Coinbase is demanding it through the federal court, in order to make clear how requirements should be adapted to digital assets.
The CEO also commented on his previous suggestion about the company potentially moving out of the US if unclear regulations persist, claiming it was “retracted” and emphasizing that Coinbase will always keep its roots in the US. He did refer to the more consistent approach from the EU and the UK towards cryptocurrency regulation, as well as their friendlier stance towards Coinbase operations in their respective territories.
Gaining a clear picture on US crypto regulations is currently in Coinbase's spotlight as the company is making a regular effort to inform the regulatory body of the importance of a flexible approach towards this form of assets. Even with the differences between the two parties, it is still to be seen, how the SEC plans to respond to Coinbase's legal request. If a clear answer is not given, then the crypto company could address their complaints through an appeal in a higher court.
For now, the SEC has yet to make an official statement in response to Coinbase's ongoing complaint.
Leonardo Cox
- 2023-05-08
Coinbase and SEC in a Battle Over US Crypto Regulations
Coinbase, the leading crypto exchange platform, and the Securities and Exchange Commission (SEC) are currently in a heated battle over US crypto regulations. In July, Coinbase submitted a petition to the SEC requesting clearer regulation, but the US regulator has yet to provide a response.
