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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Mar 19, 2024 08:22 UTC
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Coinbase Battles SEC for Clear Crypto Regulations: CCI Joins the Fight!
Coinbase says the SEC should create clear rules instead of making things up as they go (regulation by enforcement).
CCI agrees with Coinbase and thinks the SEC should be more transparent with their crypto rules.
This court case could decide how cryptocurrencies are regulated in the US.
In a significant move on the 18th of March 2024, the Crypto Council for Innovation (CCI) threw its weight behind Coinbase by filing an amicus brief against the Securities and Exchange Commission (SEC). This bold step follows the SEC’s rejection of Coinbase’s rulemaking petition in December 2023, with Coinbase alleging arbitrary actions on the SEC’s part.
Origins of the Battle
The legal dispute between Coinbase and the SEC traces back to July 2022 when Coinbase urged the SEC to engage in rulemaking to guide the digital assets industry. However, the SEC ignored this request, prompting Coinbase to file a mandamus proceeding to compel a response.
After further delays and pressure from the Third Circuit, the SEC ultimately denied Coinbase’s regulatory request without giving a clear reason. However, Coinbase challenged the denial, arguing that it is arbitrary, capricious, and in violation of the Administrative Procedure Act (APA).
Also Read: Coinbase Gets Strategic: $1 Billion Debt Sale Protects Investors
CCI Steps In
In its amicus brief submitted to the court, the CCI expressed concerns about how the SEC regulates the digital asset industry. The CCI criticized the SEC’s reliance on enforcement-based regulation, saying it lacks transparency and hinders innovation.
The CCI also noted that the SEC’s denial of Coinbase’s request lacked a clear rationale, falling short of the standards set by the APA.
Furthermore, the CCI argued that the SEC’s reluctance to create clear rules leaves industry players without proper guidance, pushing them to seek clarity abroad. This, in turn, weakens the United States’ position as a leader in the global digital assets market.
Read More: Judge Rules Against SEC, Citing ‘Gross Abuse of Power’ in Digital Licensing Lawsuit
What’s at Stake?
The CCI’s support for Coinbase highlights the importance of clear regulations in the cryptocurrency space. As Coinbase continues its legal battle against the SEC, stakeholders nationwide are closely watching. The outcome could have far-reaching effects on how digital assets are regulated in the United States and beyond.
By backing Coinbase, the CCI not only supports a specific company but also advocates for broader principles of innovation and regulatory fairness.
The future of crypto regulation in the US hangs in the balance. What are your hopes for the outcome?
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