Brian Armstrong explained that the litigation initiated against the exchange by the U.S. Securities and Exchange Commission (SEC) may ultimately provide greater regulatory clarity for the industry as the case goes to trial.
“Frankly, the 2024 election is also an important factor. It is politically unpopular to speak out against the crypto industry now,” the businessman assured and recalled the SEC lawsuit against rival exchange Binance. – Since we’ve seen that there have been lawsuits against Coinbase -I have to remind people: we’re working with the SEC on a civil case as well. It’s kind of a technical question about what is a commodity and what is a security. The courts can help bring clarity to the issue.”
Coinbase petitioned the SEC last summer. Crypto exchange demanded from the regulator to clarify the powers of the Commission to supervise the market for digital assets. The main question is whether the current regulatory framework for securities applies to cryptocurrencies. After ignoring the petition, Coinbase went to court and redirected the petition to the SEC several times. It was recently reported that the SEC promises to respond to cryptocurrency exchange Coinbase’s petition for cryptocurrency regulation in the U.S. within four months.
In a recent response to Coinbase, the SEC clarified that it is considering a petition about the actions of the exchange itself, against which the regulator filed a lawsuit last Tuesday. According to the lawsuit, Coinbase has been operating in the country since 2019 as an unregistered broker and trading cryptocurrencies, which are securities;