Coinbase’s Legal Battle: SEC’s Odd Compliance Stance
The post Coinbase’s Legal Battle: SEC’s Odd Compliance Stance appeared first on Coinpedia Fintech News
The ongoing legal battle between Coinbase and the US Securities and Exchange Commission (SEC) has witnessed significant development. A recent exchange of views between XRP attorney John Deaton and Coinbase’s Chief Legal Officer (CLO) Paul Grewal has shed light on the SEC’s approach towards compliance within the crypto industry.
Crypto Industry Compliance Dilemma, Coinbase CLO Expose SEC’s Double Standards
The US Securities and Exchange Commission’s (SEC) stance on seeking compliance has come under scrutiny. To shed light on this notable shift, Paul Grewal, CLO of Coinbase, took to X (formerly known as Twitter) to express his concerns over the SEC’s denial of providing guidance to crypto companies seeking compliance with regulations.
Eventually, the major puzzle for Grewal is the SEC’s interpretation that seeking legal advice for a lawful token sale implies an intent to violate Section 5 of the Securities Act.
“I’ve never understood the logic that seeking advice to comply with the law is proof of an intent to break the law. Sometimes, maybe most times, it’s actually the opposite.”
As he finds it contradictory that attempting to follow the law is perceived as an intention to break it.
XRP Attorney Critique SEC’s Methods
Joining this conversation, XRP attorney John Deaton supported the viewpoint of Grewal, highlighting the SEC’s pattern of leveraging transparent disclosures and partnerships against crypto firms.
According to Deaton, cooperating with the SEC becomes counterproductive because the regulator can use it against crypto firms as evidence.
Notably, Deaton shared an intriguing contrast: Coinbase CEO Brian Armstrong’s meeting request with Gensler was unsuccessful, while Sam Bankman-Fried managed to secure private meetings with the SEC chairman.
Additionally, the SEC’s recent claim that Coinbase’s prior public listing approval is now considered illegal has sparked further debates.
Transparency vs. Regulatory Pressure
In the broader context, transparency has been a cornerstone for crypto companies like Coinbase and Ripple to foster trust among their customers.
However, the SEC’s recent actions have created complexities for the crypto industry, prompting discussions about the balance between transparency and regulatory pressures.
To add to the evolving narrative, the SEC’s decision to appeal Judge Torres’ ruling on XRP programmatic sales not being securities has triggered widespread criticism within the industry.
As the crypto community navigates these regulatory waters, discussions on transparency, compliance, and the SEC’s role continue to shape the future. Stay tuned for more updates.
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Text source: Coinpedia – Fintech & Cryptocurreny News Media| Cr
