Home » News » Coinbase Prepared to Fight for Crypto Future with Defiant Reaction to SEC

Coinbase Prepared to Fight for Crypto Future with Defiant Reaction to SEC

(Image Credit Google)
Coinbase Ready to Fight for Crypto Future with Defiant Response to SEC (Image credit- Tech Times) According to a report, Coinbase, one of the biggest US cryptocurrency exchanges, is taking a combative posture towards the Securities and Exchange Commission (SEC) after the agency warned of a potential lawsuit. Multiple attorneys at Sullivan & Cromwell wrote a thorough and direct rebuttal for the company in response to the SEC's March Wells notice. Coinbase said in a blog post that it is the same business that received approval to go public two years ago and that it does not offer securities at this time. The SEC's legal arguments, according to Coinbase, are unfounded in law, haven't been challenged in court, and are likely to have unanticipated consequences for the Commission, investors, and markets outside of the digital asset market. [caption id="" align="aligncenter" width="1200"]Coinbase: Frustrated Coinbase tries rare maneuver to compel SEC to clear up  crypto murkiness - The Economic Times Image credit- The Economic Times[/caption] According to the reports, Coinbase is standing firm on its staking service, which is a crucial problem. The SEC considers this to be an investment contract, which it categorizes as a security and believes that new regulations should be written to clarify how the securities laws apply to digital assets. On the other hand, according to SEC Chair Gary Gensler, the majority of digital assets are securities and the current regulations are straightforward. Additionally, Coinbase has filed a lawsuit to compel the SEC to respond to a rulemaking petition that was filed last year. Staking, in the opinion of Coinbase, is not an investment contract but rather a service that enables customers to store some cryptocurrency in order to support the system that secures the majority of significant blockchains. Additionally, the company admits that seizing assets may be beneficial if a validator misbehaves because the backing it provided as assurances of good behavior may be reduced or removed.   Additionally, people have more faith in a validator's operation the more assets they receive from that validator. Coinbase made it simple for customers to choose to stake since participants can earn a little yield for taking part in these arrangements. According to Bloomberg, Coinbase has warned that the SEC's policies, particularly its denial to let Coinbase utilize an alternative trading system license it had secured to register, would come under scrutiny if the agency decides to take legal action. This might necessitate that Coinbase abandons all of its customer-facing operations and changes the governance of its public corporation. The full answer from the cryptocurrency exchange to the Securities and Exchange Commission's March Wells notice can be found here. Also read:Coinbase has been suing the SEC for failing to respond to a petition for the regulation of the cryptocurrency industry According to numerous reports, the SEC has been at the forefront of efforts to regulate cryptocurrencies. Chairman Gary Gensler has repeatedly reiterated his position that almost all types of crypto assets are subject to securities laws.  

By Jozeph P

Journalism explorer, tech Enthusiast. Love to read and write.


(Image credit- Beijing is doing a great job of ...


(Image credit- Moneymint) On Facebook and Twitt...


(Image credit- Cryptosale) Beginning June 1, th...


(Image credit- Yahoo Finance) Global cryptocurr...


Bitcoin white paper is hidden away in macOS’s sy...