The U.S. Securities and Exchange Commission (SEC) will continue its regulatory approach of enforcing the cryptocurrency industry for as long as possible in order to achieve its goal of “stifling” the industry, according to cryptocurrency exchange Coinbase.
“The SEC takes the destruction of digital assets seriously,” Coinbase announced in a May 31 filing with the U.S. Court of Appeals as part of its ongoing effort to push the court to force the SEC to start establishing fair rules for the cryptocurrency industry.
Although the exchange indicates that the agency does not appear ready to come to the table to establish clear and fair guidelines.
She added: “Giving the agency another opportunity to explain itself makes absolutely no sense and is undeserved. »
Coinbase asserted that the SEC has “no obligation” to make compliance with its rules possible, and the agency believes its rules are “enforceable enough” that it has filed lawsuits against several companies in the industry for already having them raped.
The exchange also asked the court not to just take its word for it before echoing the position of other SEC commissioners who also believe the SEC is hindering the digital assets industry and welcomes the extinction of new technologies.
One of the SEC’s most pro-cryptocurrency commissioners, Hester Peirce, recently released a letter promoting a cross-border sandbox program between US and UK blockchain companies experimenting with tokenized securities, a reported Cointelegraph on May 30.
“One of the problems we’ve had is people have tried to go to the SEC for help, but, you know, it just happens and nothing happens. “It would force the SEC’s hand a little bit,” Pierce said during a 2024 Consensus roundtable.
The SEC believes its strict approach only poses difficulties for some
At the same time, Coinbase also noted that the SEC had attempted to soften its hardline approach towards the cryptocurrency industry by saying its rules could only pose challenges to a small segment of the industry.
“The SEC attempts to downplay its oppressive position by emphasizing that ‘only a small group of market participants’ may ‘experience compliance difficulties’ under the ‘distinct provisions’ of the existing rules,” she said. .
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The SEC filed a lawsuit against Coinbase in June 2023, alleging that Coinbase never registered as a broker-dealer, national securities exchange, or clearing agency, thereby avoiding the securities exchange disclosure system.
Coinbase sought to have the case dismissed, but the SEC consistently opposed its attempts. Although the cryptocurrency industry and legal experts were optimistic that Coinbase would dismiss the case, it was unsuccessful.
On January 21, Cointelegraph reported that Elliott Stein, senior litigation analyst at Bloomberg, predicted a 70% chance the exchange would get a full dismissal of the lawsuit after attending the hearing.
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