Cryptocurrency exchange Coinbase has accused the US Securities and Exchange Commission (SEC) of trying to destroy the crypto market in its latest filing. Indeed, the statement arrives as the exchange is seeking a new regulatory framework from the agency for the digital asset sector.
Last month, Coinbase called on the SEC to develop new rules that support the responsible growth of the industry in the United States. Subsequently, the exchange has recently claimed that US-based digital asset firms are trapped in a ‘catch-22’ in a closing brief at the Court of Appeals for the Third Circuit.
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Coinbase Accuses SEC of Attempting to Destroy Crypto
Over the last year, digital asset regulation in the United States has been a major talking point. Amid increased lawsuits from the SEC against crypto firms, the regulation-by-enforcement approach has not proven fruitful. Moreover, it only threatened the industry’s standing in the country.
That is why Coinbase sought renewed regulatory frameworks from the agency earlier this month. However, that has not come to fruition. In a recent brief, Coinbase accused the SEC of trying to destroy crypto through its approach to governance.
Coinbase called out the SEC’s tendency to require compliance from firms, only to launch “scorched earth litigation against these firms for their failure to do so.” Moreover, they allege that this propensity is connected with more nefarious intentions for the market’s presence in the country.
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“This pattern of conduct is a purposeful effort to destroy an industry by demanding the impossible and prosecuting companies that fail to achieve it,” the exchange said. Additionally, they claim the agency is attempting to influence major policy changes.
The SEC has recently approved spot Ethereum ETFs in the United States, a shocking shift. For many, the move is political, as it showcases a tonal transition for the agency. Moreover, cryptocurrency regulation is poised to be a massive aspect of the upcoming 2024 elections.
Donald Trump and Joe Biden have both embraced the asset class in recent campaign moves. This kind of relevance should help the continued push for proper regulation. Things like the FIT21 crypto bill are the first steps toward that. Yet, Coinbase is not wrong in how the SEC’s actions have been perceived.