Regulation
Coinbase Says SEC Is Trying to Destroy Cryptocurrencies in Latest Brief
Cryptocurrency exchange CoinBase accused the US Securities and Exchange Commission (SEC) of trying to destroy the cryptocurrency market in its latest statement. In fact, the statement comes as the exchange is seeking a new regulatory framework from the agency for the digital assets sector.
Last month, Coinbase called on the SEC to develop new rules that support the industry’s responsible growth in the United States. Subsequently, in a closing brief to the Third Circuit Court of Appeals, the exchange recently argued that US-based digital asset companies are caught in a “catch-22.”
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Coinbase Accuses SEC of Trying to Destroy Cryptocurrencies
Over the past year, the regulation of digital assets in the United States has been a major point of discussion. Amid the increase in lawsuits from SEC against crypto firms, the regulation-through-enforcement approach has not proven fruitful. Furthermore, it only threatened the industry’s position in the country.
This is why Coinbase asked the agency to revamp regulatory frameworks earlier this month. However, this was not achieved. In a short short, Coinbase accused the SEC of trying to destroy cryptocurrencies through its approach to governance.
Coinbase denounced the SEC’s tendency to require compliance from companies, only to initiate “scorched earth litigation against these companies for their failure to comply.” Furthermore, they argue that this propensity is linked to more nefarious intentions for the market’s presence in the country.
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“This pattern of conduct is a targeted effort to destroy an industry by demanding the impossible and prosecuting companies that fail to achieve it,” the exchange said. Additionally, they say the agency is attempting to influence important policy changes.
The SEC did this recently Ethereum spot ETFs approved in the United States, a shocking change. For many, the move is political, as it shows a tonal transition for the agency. Additionally, cryptocurrency regulation is set to become an important aspect of the upcoming 2024 elections.
Donald Trump and Joe Biden have both embraced the asset class in recent election moves. This type of relevance should aid the continued push for proper regulation. Things like the FIT21 crypto bill are the first step in this direction. However, Coinbase is not wrong in how the SEC’s actions have been perceived.