Coinbase, SEC battle over clear crypto regulation

As a seasoned crypto investor with a decade of experience navigating this volatile yet exciting digital frontier, I find myself closely watching the ongoing tussle between Coinbase and the SEC. The stakes are high for both parties, as the future of crypto regulation in the U.S. hangs precariously in the balance.


On Monday, September 23rd, Coinbase urged the U.S. Securities and Exchange Commission for clear and transparent guidelines regarding cryptocurrency regulations.

In a federal appeals court in Philadelphia, as reported by Reuters, there was a disagreement between the top U.S. cryptocurrency trading platform and a financial regulatory body.

Coinbase urged the SEC to create a better regulatory scene for crypto assets in the U.S. 

In December, Coinbase submitted a petition arguing that the current cryptocurrency regulatory structure is too complex to function effectively. However, the Securities and Exchange Commission (SEC) has since rejected this claim.

According to a report by Reuters on September 23rd, it was stated that cryptocurrency businesses are unable to function within the United States because of overly stringent regulations imposed by the Securities and Exchange Commission (SEC).

In simpler terms, Coinbase’s legal representative, Eugene Scalia, conveyed to the appellate court that the Securities and Exchange Commission (SEC) is failing to offer guidance on the process for registering with them and adhering to U.S. regulations.

Conversely, attorney Ezekiel Hill contended that the Securities and Exchange Commission (SEC) shouldn’t need to establish fresh regulations for Coinbase if the firm chooses to operate in a manner that doesn’t align with the current regulatory structure.

The judges said that the SEC is taking a cautious approach toward rulemaking but pressured the agency on “why cryptocurrency was not one of them.”

Last year, Coinbase was accused by the SEC of functioning within the country without proper registration as a broker. Additionally, the regulatory body alleged that Coinbase’s staking program and more than ten digital assets listed on their platform were classified as securities.

About three weeks past, on June 27th, Coinbase took legal action against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), alleging that they refused to disclose the required information as per the Freedom of Information Act.

Coinbase and the SEC are clashing over the securities allegations in a separate lawsuit. 

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2024-09-24 09:46