Monday, March 4, 2024

Coinbase sues SEC over crypto rule denial, calls it “abdication of duty”

The biggest cryptocurrency exchange in the US, Coinbase, is involved in a protracted legal dispute with the US Securities and Exchange Commission (SEC). The Exchange is one of the leading advocates for crypto-specific laws in the United States. The position was taken as businesses across the nation increasingly faced enforcement-focused regulations, which prompted calls for the financial regulator to finally change its direction.

Coinbase to sue SEC for abdication of duty
Paul Grewal, the chief legal officer of Coinbase, has promised to file a lawsuit against the SEC’s dereliction of duty in the Third Circuit court.

It follows the denial of the exchange’s petition seeking regulatory clarity by the US SEC. SEC Chair Gary Gensler released a statement citing several reasons for the denial, including:

  • The cryptocurrency securities markets are already subject to rules and regulations.
    that the SEC also uses rulemaking to address the cryptocurrency securities markets.
    Preserving the Commission’s discretion over regulation priorities is crucial.
  • Gensler concurred with Gurbir Grewal, Director of the SEC’s Division of Enforcement, who said, “You simply can’t ignore the rules because you don’t like them or because you’d prefer different ones; the consequences for the investing public are far too great.”
  • Gensler asserts that Congress creates securities laws to control investments regardless of their nature or label. Finally, he expressed his support for the commission’s decision to reject the petition by arguing that the current securities laws are appropriately governing crypto asset securities.

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Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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