In what may be another Ripple-like legal battle, Coinbase CEO has revealed the exchange intends to seek clarity from the SEC in court.
Coinbase Exchange, the latest cryptocurrency trading platform that the United States Securities and Exchange Commission (SEC) has sued, will undoubtedly put up a fight. Using his official Twitter account to comment on the market regulator’s lawsuit, CEO Brian Armstrong signaled his intent to pursue legal redress in this matter.
”Regarding the SEC complaint against us today, we’re proud to represent the industry in court to finally get some clarity around crypto rules,” his opening statement in the longform Tweet reads.
Brian Armstrong, who has been outspoken about the industry’s need for comprehensive regulation, provided his exchange with several reminders that can be used to refute the SEC’s claim that it facilitated the listing and trading of investment securities.
Armstrong reports that the SEC evaluated its application to become a publicly traded company in 2021. A demonstration that the company’s business models were, at the very least, scrutinized at the time. The CEO of Coinbase also noted that there is no way to “come in and register,” as the SEC frequently claims it did to industry participants.
On this basis, the CEO of Coinbase stated that the company has repeatedly attempted to engage with the regulator and does not list securities. It has indicated that it receives many applications, but only a few assets are listed on its platform.
The CEO of Coinbase on Regulatory Disparities
Armstrong highlights the widespread confusion between the primary market regulators, the SEC and the CFTC, regarding the definition of securities. This confusion has permeated the market, as both regulators have designated one asset differently.
He argued that the US Congress is intervening to rectify the situation due to divergent viewpoints. The CEO of Coinbase criticized the SEC for regulating the emerging industry through enforcement tactics instead of providing a clear set of rules.
While the trading platform contemplates the subsequent measures to take, it has previously disclosed that it will continue operating as usual in the short term.
