Coinbase
CEO Blasts
SEC For Senseless Legal Tactics, Demands
Apology
Coinbase CEO Blasts SEC For Senseless Legal Tactics, Demands Apology
by Christian Encila
3 mins ago
in News teaser
0
Coinbase chief executive Brian Armstrong publicly went on to criticize the US
Securities and Exchange Commission, declaring its stance on cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта
confusing and inconsistent . He pointed out the issue of
regulatory uncertainty as something looming over the sector s head,
which is hurting innovation and investor trust. Armstrong s criticism
mirrors the growing industry frustration over ambiguous restrictions that
affect the sector s full potential.
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Knockout Crypto Adoption
Evolving Definitions: Securities Or Digital Assets?
Armstrong s main issue is that the SEC is unable to provide more clarity
on the legal status of digital assets, which leaves firms unsure of what is
and is not acceptable. In 2018, the SEC stated digital assets themselves were
not a security, but by 2021 it walked back this declaration and labeled
particular digital transactions an investment contract.
This was the nature of 2024 for the SEC as well, whereby it would state
digital assets are simply computer code one day and a representation of
investment contracts the next. This lack of a clear direction from the
regulations has left the crypto houses in confusion about when to stop or push
further regarding the regulatory bounds.
The next SEC chair should withdraw all frivolous cases, and issue an apology
to the American people.
It would not undue the damage done to the country, but it would start the
process of restoring trust in the SEC as an institution.
pic.twitter.com/kWVx73vYMs
— Brian Armstrong (@brian_armstrong) October 29, 2024
Armstrong goes on to suggest that what he terms “frivolous” cases against
these crypto entities must be drawn back. Additionally, the next SEC chair, he
maintains, should offer a public apology to American Investors, stating that
the directions from the SEC have handicapped the progress of cryptocurrencies• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта
unfairly.
Coinbase Opposes SEC Enforcement Actions
Unlike most other companies that back down, Coinbase is going toe-to-toe with
the SEC. Currently, the company is involved in a few lawsuits, including one
massive lawsuit where the SEC claims Coinbase violated the securities laws by
offering trading services in crypto without being properly registered.
Coinbase, in defense, filed an amicus brief arguing that the enforcement
strategy of the SEC is to target crypto companies for violating unclear or
non-existent regulations.
As of today, the market cap of cryptocurrencies• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта stood at $2.37 trillion.
Chart: TradingView
Coinbase Chief Legal Officer Paul Grewal stated the problem as faced by
businesses. According to him, The SEC proclaims existing rules work for
digital assets, yet does not guide when they apply or how compliance can be
achieved. Therefore, this vagueness led the crypto industry to be
confused, hence creating a scenario against clear-cut guidelines. This,
according to Armstrong, has the outcome of damaging American innovation.
Related Reading: Gensler Called ‘Worst Public Servant’ In Scathing Remarks By
Ripple Co-Founder
Political Spotlight On Crypto Regulations
This reflects increasing political concern over cryptocurrency regulation• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта.
Former President• Соединённые Штаты Америки (США) » Политика США » Политики США » Президент США
• Соединённые Штаты Америки (США) » Государственное устройство США » Президент США
• Политика » Политика США » Политики США » Президент США
• Государство » Государственное устройство США » Президент США Donald Trump• Объект человек » Персоналии по алфавиту » Персоналии на Тр » Трамп, Дональд recently promised at a Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin convention that,
if re-elected, he would remove SEC Chair Gary Gensler and take a new approach
to crypto oversight. Since taking office, Gensler has initiated several
enforcement actions against major exchanges like Coinbase and Binance• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Binance,
sparking widespread calls for regulatory reform.
The crypto community’s rising demand for clear regulations highlights a need
for stability to foster innovation. Armstrong’s message, echoing a broader
industry sentiment, suggests that without clearer guidelines, the US risks
stalling the growth and investment opportunities that digital assets offer.
Featured image from Pavlo Gonchar/SOPA Images/LightRocket via Getty Images,
chart from TradingView