Coinbase: SEC’s Destruction of Digital Assets is Serious
The battle between financial technology advancements and regulatory agencies is an ongoing struggle, with the U.S. Securities and Exchange Commission (SEC) undoubtedly at the center of the conflict.
Coinbase, one of the top five cryptocurrency exchanges globally, points out that the SEC will continue to enforce regulatory measures on the cryptocurrency industry to meet its goal of “strangling” the sector.
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 SEC’s destruction of digital assets is serious,” Coinbase asserted.
Coinbase has been striving to engage in dialogue with the SEC, hoping to establish fairer rules for the cryptocurrency industry. However, recently, Coinbase’s Chief Legal Officer, Paul Grewal, took to Twitter to express that the SEC has failed to provide clear and fair regulations and instead consistently suppresses the industry through legal actions. This contradictory regulatory attitude undoubtedly increases uncertainty and challenges for newcomers looking 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. It further emphasizes that “providing the SEC with further explanations is meaningless and completely unwarranted.”
Franklin Templeton’s Perspective on the SEC
In contrast to Coinbase’s strategy of resistance against the SEC, investment firm Franklin Templeton takes a more positive stance towards the regulatory agency.
Franklin Templeton, one of the financial giants that submitted an application for an Ethereum spot ETF to the SEC, together with other applicants, received preliminary approval from the SEC on May 23.
Roger Bayston, the Digital Assets Director at Franklin Templeton, noted that the SEC’s attitude has gradually shifted since the beginning of this year. “We have been in contact with the SEC, and when they started showing signs of transformation and changing their attitude, we became excited,” Bayston stated.
The SEC’s stance on the Ethereum ETF, which initially had strong opposition, underwent a dramatic reversal overnight, leaving many investors puzzled about the SEC’s intentions. However, Bayston is not surprised by the approval of the Ethereum ETF because he knows that “the SEC does not want to hand over advantages to anyone in this new market.”
Despite the frequent dissatisfaction expressed by cryptocurrency industry players towards 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 strong 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 agencies 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, we can observe different strategies and the various impacts they have on the industry.
In the future, the development of the industry and the tug-of-war between regulatory forces will continue to influence the legal and market development of digital assets, and the strategic choices made by innovators will determine their success in this challenging market.
References:
Cointelegraph