- The SEC and Coinbase engaged in a regulatory dispute over Coinbase’s trading activities.
- To prevent a lawsuit, the SEC asked Coinbase to halt trading in all digital assets on its platform, with the exception of Bitcoin (BTC).
- Brian Armstrong, CEO of Coinbase, disagreed with the SEC’s interpretation and claimed that following it would create an undesirable precedent for the cryptocurrency sector.
- The majority of cryptocurrencies (apart from Bitcoin) have been regularly viewed by SEC Chair Gary Gensler as securities, which has prompted increased regulatory control attempts.
- In response to the SEC’s demands, Coinbase sued the agency for claimed violations of US federal law.
- Coinbase submitted a reply request to dismiss the lawsuit, claiming that the SEC’s allegations went beyond the bounds of the law.
- In order to encourage responsible innovation in the cryptocurrency market, the corporation underlined the necessity for regulatory certainty.
- The SEC, however, says it may take years to develop appropriate standards and is not in a haste to offer clear regulatory parameters.
- The SEC charged Coinbase with adopting a legal framework for listing decisions that it now contends does not apply to its operations in a separate complaint.