- Coinbase CEO has responded to the SEC’s lawsuit against the company with great optimism, saying it is an opportunity to achieve clear-cut regulations finally.
- He also criticized the regulatory conflicts between the SEC and the CFTC as both agencies struggle to categorize cryptocurrencies between commodities and securities.
- Paul Grewal, the Chief Legal Officer, called the SEC’s action disappointing ahead of his hearing at the US Congress.
Adverse reactions have trailed the Securities and Exchange Commission’s (SEC) regulatory approach toward Coinbase as the commission and 11 states filed a complaint against the company.
In response to the SEC’s lawsuit against the company, Coinbase CEO Brian Armstrong took to Twitter to express optimism about the development of the crypto industry so far. According to him, “the team is very confident in our facts and law..” “This is a chance to finally get the needed clarity.”
He went further to explain to his followers that the company reviewed the business and allowed them to register as a public company and that was not done automatically but through a careful adherence to rules. Armstrong took the opportunity to swipe at the SEC and the Commodity Futures Trading Commission’s (CFTC) stance on digital assets.
“The SEC and CFTC have made conflicting statements and don’t even agree on what is a security and what is a commodity.”
Brian Armstrong has been a strong critic of the inconsistent approach of regulators in the United States, calling for a new holistic approach to regulating the industry. He also warned that the current “regulation by enforcement” approach is detrimental to the growth of crypto firms in the country.
Coinbase’s legal team has previously filed a suit against the SEC for failing to provide rules regulating digital assets and mandating the Commission to offer clarity.
Paul Grewal mounts pressure on SEC
Paul Grewal, Coinbase’s Chief Legal Officer, has called on Congress to adopt the Digital Asset Market Structure Draft while his company faces a lawsuit by the SEC. Speaking on the lawsuit, he stated that the SEC is “disappointing, but not surprising,” stressing the need to regulate effectively to catch up with other jurisdictions.
Grewal also noted that recent developments do not perturb Coinbase and will carry on business as usual despite 11 states slamming the company with a “cease and desist” order regarding its staking products.
“The solution is legislation that allows fair rules for the road to be developed transparently and applied equally, not litigation. Despite today’s complaint, we will continue to operate our business as usual,” Grewal added.
The lawsuits against Coinbase and Binance sent the market tumbling this past week though slight positive signals have trickled in.
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