Coinbase: SEC’s Destruction of Digital Assets is Serious
The battle between financial technology advancements and regulatory institutions is a long-lasting war, 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 adopt enforcement and regulatory measures against the cryptocurrency industry in order to fulfill its goal of “strangling” the industry.
In a document submitted to the U.S. appeals court on May 31st, Coinbase stated that the SEC’s actions are not only severe but also carry the intention to stifle industry innovation. “The SEC’s destruction of digital assets is serious,” Coinbase said.
Coinbase has been making efforts 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 tweeted that the SEC has failed to provide clear and fair regulations, instead continuously suppressing the industry through legal actions. This contradictory regulatory attitude undoubtedly increases significant uncertainty and challenges for newcomers who want to enter the digital asset market.
Coinbase has stated that the SEC is unwilling to sit down and discuss and establish clear and fair guidelines. They further emphasized, “Giving the SEC further opportunities for explanation is meaningless and not worthwhile.”
Franklin Templeton’s View on the SEC
In contrast to Coinbase’s strategy of resistance against the SEC, investment firm Franklin Templeton has a more positive attitude towards the SEC.
Franklin Templeton is one of the financial giants that submitted an application for an “Ethereum Spot ETF” to the SEC, and on May 23rd, they, along with other applicants, received preliminary approval from the SEC.
Roger Bayston, the Digital Assets Director at Franklin Templeton, pointed out that the SEC’s attitude has gradually been changing since the beginning of this year. “We have been in contact with the SEC, and when they started showing signs of change and a shift in attitude, we were excited,” he said.
The SEC’s attitude towards the Ethereum ETF has undergone a dramatic reversal overnight, from extreme opposition to approval. This has left many investors puzzled about what the SEC is really playing at. However, Bayston is not surprised by the approval of the Ethereum ETF because he knows that “the SEC does not want to hand over any advantages to anyone in this new market.”
Despite often leaving cryptocurrency industry players dissatisfied with its policies, Bayston believes that the SEC’s actions are aimed at protecting the economy and are not insurmountable barriers. He also expressed strong confidence in cryptocurrencies, stating that “the importance of cryptocurrencies to investment portfolios is no less than that of tech stocks 30 years ago.”
The interaction between regulatory institutions 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, one 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
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cointelegraph