Coinbase: SEC’s Destruction of Digital Assets is Serious
The battle between financial technology advancements and regulatory bodies is an ongoing struggle, with the U.S. Securities and Exchange Commission (SEC) undoubtedly at the center of the conflict.
Coinbase, one of the world’s top five cryptocurrency exchanges, has pointed out that the SEC will continue to enforce regulatory measures on the cryptocurrency industry to fulfill its goal of “killing” the industry.
In a document submitted to the U.S. appeals court on May 31, Coinbase stated that the SEC’s actions are not only severe but also carry the intention of stifling industry innovation. “The destruction of digital assets by the SEC is serious,” says Coinbase.
Coinbase has been striving to engage in dialogue with the SEC, hoping to establish fairer rules for the cryptocurrency industry. However, Paul Grewal, Coinbase’s Chief Legal Officer, recently took to Twitter to express his frustration, stating that the SEC fails to provide clear and fair regulations, instead continuously suppressing the industry through legal actions. This contradictory regulatory attitude undoubtedly increases uncertainty and challenges for newcomers who wish to enter the digital asset market.
Coinbase states that the SEC is unwilling to sit down and have meaningful discussions to establish clear and fair guidelines. They further emphasize that “giving the SEC further opportunities for explanation is meaningless and not worth it.”
Franklin Templeton’s Perspective on the SEC
In contrast to Coinbase’s resistance strategy against the SEC, investment firm Franklin Templeton has a more positive attitude towards the regulatory body.
Franklin Templeton, one of the financial giants that submitted an application for an Ethereum spot ETF to the SEC, received preliminary approval alongside other applicants on May 23.
Roger Bayston, Franklin Templeton’s Director of Digital Assets, noted that the SEC’s attitude has been gradually changing since the beginning of this year. “We have been in contact with the SEC, and when they started showing signs of change and shift in attitude, we were excited,” he said.
The SEC’s stance on the Ethereum ETF has dramatically reversed from extreme opposition to approval overnight, leaving many investors puzzled about the SEC’s motives. However, Bayston is not surprised by the approval, as he knows that “the SEC doesn’t want to hand over advantages to anyone in this new market.”
Despite the frequent dissatisfaction of cryptocurrency industry players with the SEC’s policies, Bayston believes that the SEC’s actions are aimed at protecting the economy and are not insurmountable barriers. He also expresses great confidence in cryptocurrencies, stating that “the importance of cryptocurrencies in investment portfolios is no less than that of tech stocks 30 years ago.”
The interaction between regulatory bodies and financial technology innovators is undoubtedly a complex competition. From the collaboration between Franklin Templeton and the SEC to the confrontation between Coinbase and the SEC, various strategies and their impact on the industry can be observed.
In the future, the development of the industry and the tug-of-war between regulatory forces will continue to affect the legal and market development of digital assets. The strategic choices made by innovators will determine their success in this challenging market.
References: cointelegraph, cointelegraph
