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SEC Pushes Back Against Coinbase
Coinbase wants the regulator to clarify what its crypto rules actually are.
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In a new filing Friday, the U.S. Securities and Exchange Commission (SEC) urged the court to reject Coinbase's petition for a new crypto regulatory framework. The SEC dismissed Coinbase's arguments, maintaining that its approach to applying existing regulations to crypto is reasonable and within its discretion.
What's the scoop?
- Coinbase's Claims: In a March filing, Coinbase argued that the SEC lacks the authority to extend existing securities regulations to crypto assets, accusing the agency of overreach and unauthorized enforcement. Coinbase's Paul Grewal called the current registration process unworkable.
- Ongoing Conflict: The SEC sued Coinbase in June 2023, alleging it operated as an unregistered exchange, clearing house, and broker, and offered unregistered securities via its staking service. Coinbase denied these claims, arguing that the tokens on its platform are not securities.
- Political Moves: Coinbase has been actively opposing the SEC's "regulation by enforcement" approach, calling for new legislation and making significant donations to pro-crypto political candidates.
- Current Status: The case remains ongoing. A federal judge recently allowed the SEC's lawsuit to proceed, deeming its arguments against Coinbase plausible.
Bankless Take:
The ongoing dispute between Coinbase and the SEC comes against several other Wells Notices being served to companies like Uniswap, Metamask, and Robinhood for crypto operations. As the election draws closer, we can expect this fight to continue to heat up, with even the SEC’s role coming under further scrutiny.