Coinbase Says SEC Is ''Bent On Choking Crypto Industry'' Even After Ethereum ETF Approvals

Coinbase Says SEC Is ”Bent On Choking Crypto Industry” Even After Ethereum ETF Approvals

Updated: 03 June 2024

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The US Securities and Exchange Commission (SEC) will continue “choking” the crypto industry even after its recent approval of spot Ethereum ETFs (exchange-traded funds), Coinbase said.

Coinbase’s legal team challenged the SEC’s unwillingness to establish clear regulatory guidelines for the crypto space in a May 31 filing with the US Court of Appeals as it continues a campaign for fair rules for the crypto industry.

Despite the SEC’s approval of spot ETH ETFs on May 23, and the launch of similar investment vehicles related to Bitcoin at the beginning of this year, Coinbase believes the SEC maintains an anti-crypto stance.

“The SEC is serious about the destruction of digital assets,” Coinbase said in the filing. “The government is intent on crushing the digital asset industry.”

Coinbase Says SEC Wants “Destruction” Of The Crypto Industry

Coinbase’s filing follows the crypto community’s recent celebration of the approval of spot Ethereum ETFs. Analysts had feared that these proposed investment products would be rejected.

Today we filed our closing brief in the Third Circuit challenging the SEC’s denial of our rulemaking petition. At the core of this case is a single, conclusory sentence in the SEC order under review. That sentence—which “disagree[d]” that SEC rules are unworkable for digital…

— paulgrewal.eth (@iampaulgrewal) May 31, 2024

That all changed after the political winds changed for the crypto industry amid a presidential election campaign.

Donald Trump was the first of the two presidential candidates to open up to crypto, and announced that his campaign will accept donations in digital currencies.

President Joe Biden’s campaign responded by starting to reach out to crypto industry players, too, regarding “crypto community and crypto policy moving forward.”

The outreach by Biden’s campaign marked a major shift in the current president’s stance towards the digital asset space.

Analysts say the sudden U-turn on Ethereum ETFs was sparked by political considerations after Trump turned pro crypto. The SEC only started to communicate with applicants several days before the ETFs received the green light.