Coinbase, a leading crypto exchange in the global and United States market has clashed with the US Security and Exchange Commission over the lack of a clear crypto regulatory framework in the country.
Both parties clashed in a federal appeal court in Philadelphia on September 23 with Coinbase urging the SEC to create a better regulatory scene for crypto assets in the country.
Coinbase and the SEC have an existing history of squabbles over crypto regulation in the United States.
Last December, Coinbase signed a petition claiming that the existing crypto regulatory framework is unworkable but the US SEC denied it.
Yesterday, Coinbase doubled down on its claim saying that crypto companies cannot operate in the US due to the SEC’s unreasonable regulation.
Back and Forth
The legal counsel of both parties went at it in the Federal appeal court of Philadelphia yesterday. Coinbase the crypto exchange was represented by Eugenia Scalia while the US SEC was represented by Ezekiel Hill
Coinbase’s lawyer Eugenia argued that the SEC is refusing to provide information on how to register with the agency and comply with U.S. laws.
This makes it difficult for crypto companies to do business within the United States Jurisdiction.
The legal counsel representing the US SEC in her response said that the regulator should not have to create a new set of rules for Coinbase if the company “wants to arrange its business in a way that does not comply with the existing regulatory framework.”
The Judges highlighted the cautious approach the SEC was taking in rulemaking and dishing out a regulatory framework but questioned the agency as to why cryptocurrency was not in its plans yet.
Legal Tussle
The Legal Tussle Between Coinbase and the United States Securities and Exchange Commission has lasted for a while now.
Last Year, the SEC sued Coinbase for failing to register as a broker while operating in the country. Moreover, the regulator claimed that the exchange staking program was faulty and that over 10 digital assets available on the platform were securities.
Three weeks after that Coinbase sued the Federal Deposit Insurance Corporation for refusing to oblige with a request for information over the Freedom of Information Act
Both entities are clashing over security allegations in a separate lawsuit.
What to Know
- Coinbase is a US-owned crypto exchange and was founded by Brian Armstrong. The crypto exchange is the largest in the United States and rivals Binance for the US market share.
- The United States SEC under Gary Gensler has come under fire for anti-crypto policies which were recognized again when Donald Trump stated that he was going to fire Gary Gensler if elected at the Bitcoin Conference in Nashville.