The SEC and Coinbase are again at loggerheads over the dismissal of the exchange to register itself.
In yet another blow to the crypto sphere by the SEC, the body dismissed Coinbase’s registration bid. On Tuesday, the crypto exchange’s chief legal officer, Paul Grewal informed the lawmakers about it.
At the House Agriculture Committee hearing, Paul gave a statement regarding this step taken by the SEC. He told everyone that the regulatory did it without any counter-proposal or response.
On the same day, Coinbase was sued by SEC for allowing “unregistered securities” on its platform. For the same reason, they went after Binance too, and slammed a lawsuit on them.
As per a press release, the regulator blamed Coinbased for running their operations without being registered as an exchange, broker, or clearing agency.
Also, it is to be noted that the SEC took action against Coinbase with a multi-state task force. It involved the squads from Wisconsin, Washington, Vermont, South Carolina, New Jersey, Maryland, Kentucky, Illinois, California, and Alabama.
In particular, Alabama’s order stated that Coinbase flouted the securities laws brazenly. It rolled out a staking rewards program on its platform without even registering in the state.
The Alabama Securities Commission Director Amanda Senn said that they’re committed to safeguarding the interests of Alabama’s investors and customers. She said that people who have invested in Defi spaces don’t go outside the body’s protective ambit. The action makes out stand clear and protects the crypto asset holders too. We are fully aware of the risks involved in this sphere and thus, offer protection to them under the same laws.
Coinbase CEO Brian Armstrong expressed concerns over the SEC’s actions in a tweet. He said that the enforcement approach of the regulatory is detrimental to the American dream.
He said that the exchange is ready for any sort of legal battle and stands its ground in any case.
The SEC is giving a hard time to Coinbase and other exchanges through lawsuits and other actions. The exchanges are of-course denying any wrongdoing and accusing the regulatory of the negligence of duties. The body, on the other hand, claims that they are doing it to protect the investors. The protracted battle between the crypto organizations and SEC takes a different turn every day. So let’s wait and watch how this incident gives shape the developments in the industry.