As a seasoned researcher with a knack for deciphering the complexities of financial markets and regulatory landscapes, I find myself intrigued by the ongoing saga between Coinbase and the SEC. The narrative is reminiscent of a political thriller, with Brian Armstrong playing the role of a modern-day David against the Goliath-like figure of Gary Gensler.
The CEO of Coinbase criticizes the SEC, suggesting that the incoming Chairman should halt unnecessary legal actions against cryptocurrency firms and issue an apology to U.S. citizens for any perceived overreach or inconvenience caused.
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As a dedicated crypto investor, I’ve voiced my concerns about the current approach of the U.S. Securities and Exchange Commission (SEC). I believe that their new chairman should reconsider all unnecessary legal actions against cryptocurrency companies and extend an apology to American citizens for any confusion or inconvenience caused by these actions. Moreover, I’ve expressed my viewpoint that the SEC needs to demonstrate more consistency in defining and regulating crypto assets.
The new SEC chairman might consider dismissing unnecessary lawsuits and extend an apology to U.S. citizens. This step could initiate the path towards regaining trust in the SEC as a trusted entity.
— Brian Armstrong (@brian_armstrong) October 29, 2024
He posted a chart with various statements by SEC officials on this topic, including a quote from former Commissioner William Hinman, who said in 2018 that digital assets cannot be clearly classified as securities. This statement and other materials from Hinman became the basis for Ripple Labs’ defense in the lawsuit with the SEC.
Timeline of the Coinbase v SEC war
For quite some time now, Coinbase has been engaged in a prolonged dispute with the Securities and Exchange Commission (SEC). In the month of March 2023, Coinbase was alerted by the SEC about their intention to enforce actions, potentially due to breaches of securities regulations. The notice specifically pointed out certain cryptocurrencies available on the platform, including Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
In April 2023, Coinbase initiated a legal action against the SEC to push them to establish new guidelines for cryptocurrency regulation. Yet, the SEC requested the court to discard this lawsuit, claiming they aren’t required to respond immediately to such requests. In June 2023, the SEC countered with their own lawsuit, targeting both Coinbase, Inc. and Coinbase Global, Inc., without naming Armstrong and other executives.
Additionally, the Securities and Exchange Commission accused Coinbase of not registering their cryptocurrency staking service before offering it.
SEC statement
Ever since then, the dispute between the SEC (Securities and Exchange Commission) and Coinbase has intensified. Coinbase has submitted numerous requests for a partial summary judgment. Nevertheless, the disagreement between the regulatory body and the digital exchange is still unabated.
Gary Gensler may soon lose his job
For several years, there’s been friction between the crypto community and the Securities and Exchange Commission (SEC). This tension has escalated following Gary Gensler’s appointment as the head of the SEC. There are rumors about his potential resignation after the 2024 presidential election, even though his term technically extends until January 2026. However, it’s tradition for SEC heads to step down when there’s a change in the presidential administration.
In light of Gensler’s contentious views on digital assets, this state of affairs keeps the cryptocurrency market buzzing with anticipation. Should Kamala Harris secure victory in the election, we can expect a new leader at the SEC to emerge. Conversely, if Donald Trump prevails, drastic shifts in regulatory policy towards the crypto sector are speculated.
A shift in leadership at the Securities and Exchange Commission (SEC) might usher in a fresh phase in the evolution of the U.S. cryptocurrency market, considering the current leader’s skeptical stance on digital assets. Market players anticipate a more collaborative approach from the new administration and the establishment of a clearer, more transparent regulatory framework for the cryptocurrency sector.
Why crypto community hates Gensler?
As Gensler took over as the chairman of the SEC, the cryptocurrency sector began experiencing heightened scrutiny from regulators. Yet, not every action taken by the commission can be considered warranted.
It’s become quite evident that economic sanctions have significantly affected companies dealing with cryptocurrencies. As of now in the U.S., there’s a lack of specific guidelines for classifying digital assets, leaving the Securities and Exchange Commission (SEC) to make decisions based on their own interpretations.
As per Gensler’s statement, most cryptocurrencies apart from Bitcoin (BTC) are deemed as illegally issued securities. Consequently, he started creating a list, often referred to as a “blacklist,” of digital assets that have been identified by the SEC as unlawfully issued. Alongside Ripple (XRP), this blacklist includes 68 other cryptocurrencies. Surprisingly, Ethereum, which holds the second-largest market cap among all coins, was not featured on this list. The reasons for Ethereum’s exclusion from the blacklist are currently unknown, while other digital assets like Ethereum (ETH) were added to it.
Trump’s new SEC head could make the U.S. a crypto paradise
Speculation started in July about potential candidates for the SEC chairmanship if Trump wins the 2024 presidential election. Dan Gallagher is one of the early frontrunners, as per crypto community discussions. These individuals believe that Gallagher could replace current SEC head Gary Gensler, whose policies are perceived as unsuitable by crypto investors.
There are whispers that Dan Gallagher could take over Gensler’s role in a potential Trump administration.
Gallagher is currently the Chief Legal Officer at Robinhood and previously served as an SEC commissioner during Obama’s presidency.
Show your support if you believe Gallagher would be favorable towards cryptocurrency should he get elected.
— Lark Davis (@TheCryptoLark) July 2, 2024
From November 2011 through October 2015, Gallagher held the position of SEC commissioner. During this time, he’s also taken on different roles, such as aiding Commissioner Paul Atkins and Chairman Christopher Cox. Additionally, he represented the SEC during the liquidation process of Lehman Brothers.
As an analyst, I believe there’s a strong case for Dan Gallagher to head the SEC should Trump secure another term. Firstly, his extensive tenure within the commission, spanning various roles, gives him an intimate understanding of the SEC’s internal mechanisms and policies. Secondly, his background in serving under a Republican administration aligned with Trump adds credibility to his potential fit within the current administration.
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2024-10-29 21:12