Coinbase Calls Out US Financial Regulators, Denies Listing Securities
Coinbase is embroiled in a major battle with US financial regulators, firmly denying allegations of listing securities on its platform. Coinbase Global has reiterated its view to the U.S. Securities and Exchange Commission that it has not broken any securities laws in its formal response to a legal threat. At the heart of the issue is the question of which digital assets qualify as securities and fall under the SEC's jurisdiction.
The SEC sued Coinbase on June 6, claiming the exchange violated U.S. securities laws by listing several tokens it considers securities and not registering with the agency. This lawsuit marks a significant escalation in the ongoing debate surrounding the regulation of digital assets. As a regulated exchange, Coinbase must comply with SEC regulations, which prohibit it from listing digital assets the regulator deems as securities. “I know that’s not...”
Coinbase is fighting a potentially existential case from federal regulators who argue it operated an unregistered securities exchange. Three new legal filings lend support to Coinbase's argument that it has acted responsibly and within the bounds of the law. According to Coinbase’s CLO, the SEC is unable to unilaterally expand and redefine its own regulatory ambit. With this, the Coinbase executive wants the matter left to legislative clarity, rather than regulatory overreach.
The SEC's stance has faced scrutiny. A federal appeals court says the U.S. Securities and Exchange Commission needs to better explain why it turned down a request from a company related to cryptocurrency. This ruling underscores the need for clear and consistent guidelines for the digital asset industry.
The controversy isn't limited to this specific case. BREAKING: 🇺🇸 US authorities have reportedly arrested former Coinbase Product Manager Ishan Wahi for insider trading. In addition, the SEC alleged that nine of the digital assets traded on the exchange were unregistered securities, highlighting the broader regulatory challenges facing the crypto industry. The outcome of this battle will likely have far-reaching consequences for the future of cryptocurrency exchanges and the digital asset landscape in the United States.