Coinbase and the SEC are engaged in a federal court fight on the formulation of new regulations for the digital asset sector. Coinbase asserts that the SEC has failed to furnish explicit rules for enterprises within the Bitcoin sector, notwithstanding its persistent counsel to “come in and register.”
Paul Grewal, Coinbase’s chief legal officer, articulated his dissatisfaction with the SEC’s rejection and its vigorous enforcement of ambiguous regulations. The SEC contends that Coinbase is subject to legal obligations and that existing rules are adequate.
SEC Chair Gary Gensler has consistently asserted that the majority of digital tokens qualify as securities and has urged issuers and exchanges to adhere to current regulations.
The SEC is engaged in a distinct legal dispute with Coinbase, having filed a lawsuit in June 2023, alleging that Coinbase operates as an unregistered broker, exchange, and clearing agency.
This protracted court dispute underscores the escalating friction between regulators and the swiftly advancing cryptocurrency sector.
