Coinbase Submits Final Arguments, Criticizes SEC Regarding Ambiguous Regulation
Coinbase Accuses SEC of Hindering Crypto Industry and Attempts to Dismantle It
In a bold move, Coinbase, a leading cryptocurrency exchange, has filed its closing brief in the Third Circuit Court as part of an ongoing clash with the Securities and Exchange Commission (SEC). The heart of the matter lies in a dismissive sentence in the SEC’s order that disagreed with Coinbase’s assertion that current regulations are impractical for crypto companies. However, Coinbase is standing its ground.
Coinbase argues that this lack of reasoning and detail is enough to dismiss the entire case. The SEC has been accused of overreach, claiming broad jurisdiction without clear authorization from Congress and failing to provide clear rules.
Coinbase’s chief legal officer, Paul Grewal, criticized the SEC’s actions as nonsensical. In the filing, Coinbase describes a Catch-22 situation where the SEC demands compliance based on an overly broad interpretation of its authority, aggressively litigates against non-compliant crypto companies, and then fails to establish the necessary rules for compliance.
Furthermore, Coinbase alleges that the SEC’s actions appear to be a deliberate attempt to dismantle the entire crypto industry by imposing unattainable demands and punishing firms that cannot meet them. The brief also accuses the SEC of using inconsistent and unsupported legal arguments to sustain its campaign against the industry.
Coinbase asserts that a court order mandating rulemaking is necessary to put an end to the SEC’s arbitrary and oppressive actions. Despite repeated requests from the industry for clear regulations, the SEC has refused to provide the necessary rules, making compliance with federal laws impossible.
The company emphasizes that a court directive is essential to stop the SEC’s arbitrary actions. Coinbase filed its rulemaking petition nearly two years ago, but the SEC has attempted to sideline it through inaction. It took a mandamus petition, court orders, and the threat of an extraordinary writ to compel the SEC to issue even a cursory denial order.
The outcome of this pivotal legal battle will determine the future of the crypto industry. Will the SEC finally be held accountable and required to adhere to clear rules? Only time will tell.