Coinbase, a cryptocurrency exchange, has stated that the United States Securities and Exchange Commission (SEC) will continue its aggressive approach to regulating the cryptocurrency industry in order to stifle its growth. In a court filing on May 31, Coinbase argued that the SEC is determined to destroy digital assets and has no interest in establishing fair guidelines for the industry. The exchange believes that further discussions with the agency would be futile and unwarranted.
Coinbase also highlighted the SEC’s belief that its rules are sufficient, as it has already taken legal action against several firms in the industry for non-compliance. The exchange urged the court to consider the views of other SEC Commissioners who share the opinion that the agency is impeding the progress of the digital assets industry and embracing its demise.
In contrast to the SEC’s heavy-handed approach, one SEC Commissioner, Hester Pierce, has proposed a cross-border sandbox program for blockchain firms in the US and UK to experiment with tokenized securities. Pierce believes that this program would compel the SEC to be more accommodating towards the industry.
Coinbase further criticized the SEC’s attempt to downplay its strict stance by claiming that its rules only present challenges for a small portion of the industry. The exchange asserted that the SEC is minimizing the impact of its oppressive regulations.
The SEC initiated a lawsuit against Coinbase in June 2023, accusing the exchange of operating as an unregistered broker and evading securities market regulations. Coinbase has sought to have the case dismissed, but the SEC has consistently opposed its efforts. Despite optimistic predictions from the crypto industry and legal experts, the case has not been dismissed.
In other news, cryptocurrency enthusiasts are already making their presence felt in the 2024 election, and their influence is expected to continue to grow.