Advertisement
AD

Main navigation

SEC Urges Judge to Deny Coinbase's Demand: Details

Advertisement
Tue, 16/05/2023 - 10:18
SEC Urges Judge to Deny Coinbase's Demand: Details
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

In an intriguing turn of events, the U.S. Securities and Exchange Commission (SEC) has urged a federal judge to dismiss a motion by Coinbase Global Inc. The cryptocurrency exchange had filed a petition last year, seeking clarity on the application of securities laws to digital currencies.

Advertisement

Coinbase, the leading cryptocurrency exchange in the U.S., lodged the request last month. The company has been vocal in its criticism of the SEC, suggesting the agency's response to its petition has been neither timely nor reasonable. Coinbase is advocating for a formal notice-and-comment process to allow public contributions.

Related

However, the SEC's counter-argument in a recent court filing rejects Coinbase's claims as unfounded. The filing asserts that Coinbase's desire for swifter or alternative regulatory action does not warrant extraordinary intervention from the court. The SEC's lawyers firmly advise that the petition should be dismissed.

Advertisement

SEC Chair Gary Gensler has consistently maintained that most digital assets fall under securities laws. He asserts that the existing rules are clear and accuses crypto firms of consciously choosing not to comply with them.

Related

The rapport between Coinbase and the SEC has become increasingly strained in recent years. A notable flashpoint occurred in 2021 when the SEC issued a Wells Notice — an intent to sue — over Coinbase's proposed lending product. This resulted in Coinbase abandoning the initiative. However, CEO Brian Armstrong lambasted the SEC's actions as dubious.

These developments have fueled apprehension about the potential impact of the SEC's actions on Coinbase. Mark Palmer of Berenberg Capital Markets estimates that at least 37% of Coinbase's first-quarter net revenue stemmed from non-Bitcoin streams. He suggests that these revenue sources could be the SEC's prime target in an expected enforcement action.

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD