Coinbase Accuses SEC of Undermining Crypto Market in Legal Filing
Cryptocurrency exchange Coinbase has leveled serious accusations against the US Securities and Exchange Commission (SEC) in its latest court filing.
The exchange claims the SEC’s actions are aimed at harming the crypto market, coinciding with Coinbase’s efforts to establish new regulatory guidelines from the agency for the digital asset sector.
In a recent brief submitted to the Court of Appeals for the Third Circuit, Coinbase highlighted the regulatory challenges faced by US-based digital asset firms, characterizing the situation as a ‘catch-22’. The exchange’s plea for clearer regulatory frameworks from the SEC follows a previous call for the agency to facilitate responsible growth within the industry.
The past year has witnessed intense scrutiny of digital asset regulation in the United States, marked by an increase in SEC lawsuits against crypto firms. However, Coinbase argues that the SEC’s enforcement approach has not yielded positive results and has instead undermined the industry’s position in the country.
Accusing the SEC of adopting a punitive stance, Coinbase points to instances where firms are penalized for failing to meet compliance standards set by the agency. The exchange alleges that this enforcement strategy is part of a broader effort to impede the growth of the crypto market and influence significant policy changes.
READ MORE: US Senator Advocates for Cryptocurrency in the American Economy
The SEC’s recent approval of spot Ethereum ETFs in the US signifies a notable departure from its previous stance on cryptocurrencies. Many view this move as politically motivated, reflecting a shift in tone within the agency. Cryptocurrency regulation is expected to be a key issue in the upcoming 2024 elections, with both Donald Trump and Joe Biden showing support for the asset class in their campaign rhetoric.
While initiatives like the FIT21 crypto bill signal progress towards comprehensive regulation, Coinbase remains critical of the SEC’s approach, highlighting concerns about its impact on the industry’s development.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
