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Coinbase CEO Brian Armstrong criticized the SEC’s lawsuit filed against the exchange
“There is no path to ‘come in and register,’” CEO tweets; “We tried.”
The SEC filed charges against Coinbase today, alleging the company didn’t register securities properly. Alabama and New Jersey are now closely scrutinizing the digital asset platform because of this.
Coinbase CEO Challenges SEC’s Accusations on Cryptocurrency Regulation
In a tweet, Coinbase CEO Brian Armstrong said the SEC had approved Coinbase’s path to becoming a publicly-traded company in 2021. According to him, this approval refutes the SEC’s accusation that Coinbase didn’t register securities.
Armstrong said cryptocurrency regulation needs to be fair and consistent. As a result of the SEC’s charges and additional actions by Alabama and New Jersey, Coinbase has been under increased regulatory pressure. This case has implications not just for Coinbase, but for the whole digital asset ecosystem.
The Coinbase CEO wrote:
“Instead of publishing a clear rule book, the SEC has taken a regulation by enforcement approach that is harming America”
Despite Coinbase’s efforts to register with the SEC, Armstrong said it was hard to classify cryptocurrencies as commodities or securities because there were unclear definitions between the SEC and the CFTC.
Armstrong argued that the SEC and CFTC should work together to help create a clearer definition of what constitutes a commodity or a security. This would help the cryptocurrency market to become more regulated and provide more protection to investors.
The SEC’s Accusation: Coinbase’s Response to Regulatory Conflict
Conflicts between regulators and companies in the U.S. cryptocurrency industry are causing this controversy. The main issue is whether modern financial tools should be regulated based on outdated definitions of securities and crypto assets.
Coinbase CEO Brian Armstrong says Coinbase doesn’t list securities and rejects most assets it reviews. Cryptocurrencies aren’t clearly classified as securities by the SEC, he says.
In light of this regulatory ambiguity, Coinbase has implemented its own rigorous process to assess listed assets. Armstrong’s statement aims to counter the SEC’s accusation that Coinbase listed securities without proper registration and asserts the company’s commitment to compliance.
After the SEC sued Binance and its CEO Changpeng Zhao on June 5, Coinbase faces regulatory action.
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