Regulation
Coinbase Criticizes SEC for “Suffocating” Crypto Industry: Now What?
- Coinbase accuses SEC and Chairman Gary Gensler of stifling cryptocurrencies.
- Coinbase Challenges SEC Concerns Over Dominance in Cryptocurrency Custody.
A new development has emerged amid the legal dispute between the US Security and Exchange Commission (SEC) and cryptocurrency exchange Coinbase.
In a recent archivingCoinbase has accused the SEC and its chairman, Gary Gensler, of trying to rein in the cryptocurrency industry.
The letter highlighting the SEC’s recent spate of enforcement actions against various crypto entities noted:
“The government is intent on crushing the digital asset industry.”
The filing coincides with an ongoing legal dispute in which the SEC has accused Coinbase of conducting sales of unregistered assets termed “securities” by the regulator.
What does Coinbase claim?
The fill highlighted four main topics.
Observing the same, Coinabse noted,
“These responses demonstrate that the SEC is intent on stifling the digital asset industry and is cracking down by refusing to provide the necessary rules the industry demands.”
In this case, Coinbase disputes the SEC’s legal claims, accusing them of inconsistency and lack of support. The exchange claims that the SEC’s actions are aimed at suppressing the cryptocurrency industry rather than facilitating compliance with the law.
Furthermore, Coinbase claims that the SEC’s jurisdiction over the digital asset industry is unlawful and seeks to implement significant policy changes through punitive measures.
On the other hand, many industry insiders have expressed concern over Coinbase’s overwhelming control of the cryptocurrency custody industry.
Bitwise CIO Matt Hougan inadvertently believes the challenging regulatory landscape Coinbase advantages creating a barrier to entry for competitors. He said:
Source: Matt Hogan/X
What will be?
As stakeholders are divided on the issue of cryptocurrency regulation, one thing is certain: the cryptocurrency industry is hampered by uncertainty due to unclear guidelines and the absence of formal rules.
Therefore, many voices within the industry are calling for a court order compelling the SEC to undertake a rulemaking process. They argue that such action is critical to bringing clarity and stability to the digital asset landscape.