- SEC filed lawsuits against leading crypto exchanges and crypto-tokens before Coinbase (CB).
- Brian Armstrong defends Exchange by questioning SEC’s forte on filing a lawsuit against them.
- CB has made it a point through various acts that the SEC is creating pressure which is negatively affecting the crypto industry.
As per the official Sources of the Security and Exchange Commission (SEC), the United States, it filed a lawsuit against a leading crypto exchange platform CB on June 6. Accusations on Coinbase, Inc. are charged for operating as a crypto asset trading platform unregistered under SEC for execution as a national securities broker and clearing agency.
Allegations say that exchange offered and sold its crypto asset staking-as-a-service program. Coinbase is held responsible for violating the security laws of the crypto market by the SEC.
SEC’s complaint states that taking time from 2019 into consideration, Exchange has made ample amounts of dollars by illegally channeling the sale and purchase of crypto asset securities.
The authorities of the SEC alleged that the clearing agency gained profit by being a traditional service of exchange without systematic enrollment in any of those functions with the commission, abiding by the law.
The forum allegedly:
- Built up a marketplace for the vendors and buyers of the crypto market to trade securities being unregistered under the proper authorized body and extract profit out of it.
- It laid an effect on the trade of actually registered securities and affected the money regulation of the security market.
- Worked as an intermediary for settling the crypto asset security transactions for its customers beyond its exceptional powers as a legal security depository as per the law, in the crypto market.
CB being an unregistered security has made investors deprived of crucial security options which the SEC could give them if they would have been registered before working. The checks and surveys by the SEC along with it safeguarding investors against disputes in interest, recordkeeping issues, and many more could have been under consideration.
The complaint alleges that Coinbase’s parent company, Coinbase Global Inc. (CGI), has all control and so CGI is consequently responsible for this violation.
Brian Armstrong, CEO of, CB in defense against the lawsuit filed by the SEC said, “The SEC has reviewed our business and let us be a public company since the start in 2021 and so there is no situation of profiting from non-registered securities, and this “didn’t come in and register” repeatedly is not true as we don’t list securities.”
He added, “We don’t let pass the large majority of assets we review, and so we discard them. The SEC and Commodity Future Trading Commission (CFTC) have made inconsistent statements, and don’t even go along on what is a security and what is a commodity, this is the reason the US Congress is bringing new legislation to sort the scenario issues.
CB Exchange Claims of Being Upright
As per Armstrong, “the complaint filed against Coinbase is entirely focused on what is or is not a security.” He has claimed to be confident in facts on the company’s part. The job will be done and in the meanwhile, he asks everybody to keep moving ahead and building as a developing industry in cryptocurrency. America will get this right in the end.
The exchange hosted a discussion online where 11.5K users tuned in. It was a platform discussion for everybody curious about the latest crypto regulation in the U.S. “Mentioning the Twitter spaces held on June 8 at 12:30 pm PT / 3:30 pm ET for an in-depth breakdown of the Digital Asset Market Structure bill, and our thoughts regarding the recent SEC enforcement actions.”
Paul Grewal, Coinbase, Chief Legal Officer (CLO), TuongVy Le, Ryan Selkis, and Justin Slaughter were the speakers here. The Structure bill is a concluded form giving token or token projects a pact to compliance. It creates a functioning secondary market and helps to establish the essence of the crypto market. Bill, though, hasn’t touched stablecoins largely on the name of regulations.
The Crypto exchange also has posted on Twitter tagging “Time-to-StandWithCrypto, a movement for sensible crypto policy, it proclaims. By minting the latest NFT, the existing holders will have new metadata ready.
The company’s approach is an attempt to take the crypto crew along and formulate the ongoing crypto regulations which the SEC has recently imposed on many crypto exchanges under the name of being unregistered securities.