Coinbase vs SEC: The crypto community rises up against the SEC method

Involved for a while in a lawsuit brought by the SEC, Coinbase can now count on the firm support of the crypto community, crypto associations, the Blockchain Association and even the Chamber of Digital Commerce. This Thursday, August 31, 2023, attorney Patrick V. Kennedy of the law firm McDermott Will & Emery filed a motion in court to be allowed to appear pro hac vice as amicus counsel for the Chamber of Digital Commerce in order to support Coinbase. Coinbase announces the end of the SEC era.

In short

• Coinbase is receiving massive support from the crypto community and the Chamber of Digital Commerce in its lawsuit against the SEC.
• Coinbase’s goal is not only to win the lawsuit, but also to clarify the regulatory uncertainty in the crypto sector in the United States.
• Faced with the recent failures of the SEC in similar trials, Coinbase and its CEO Brian Armstrong are confident about a favorable outcome which would further discredit the American stock market policeman.

For Coinbase, it’s not just about winning or losing a lawsuit

Coinbase’s Chief Legal Officer, Paul Grewal, received this 1^er September in the show “Unchained Podcast” hosted by cryptojournalist Laura Shin about the lawsuit between the crypto exchange and the US SEC. In striking optimism, the executive asserted that his company would win the case and accused the SEC and its chairman of preventing innovation in the crypto sector in the USA.

That said, Grewal takes stock of Coinbase’s priority in this legal battle. For him, it’s not just about winning or losing a case against the SEC. The objective of the exchange this time, specifies the lawyer, is to win against the regulatory uncertainty from which the regulator benefits and to have clarifications on the legal framework governing the crypto sector.

Crypto exchange Coinbase anticipates upcoming humiliation from the SEC

For several years, crypto exchange managers have accused the SEC of regulating the unregulated digital assets sector through the application of coercive measures. However, it was not mandated by the American Congress which is still working on the regulation of cryptocurrencies.

While the SEC appears to have arrogated to itself the privilege of monitoring the digital asset market, recent court decisions in its lawsuits against Ripple and Grayscale are proof that the SEC does not know which cryptos qualify as securities.

While Gary Glenser, chairman of the SEC, affirmed that all crypto, except bitcoin, are securities, the institution he heads has lost its last two trials. This failure of the regulator proves on the one hand that there is no crypto regulation and on the other hand undermines the credibility of the SEC, even if in the meantime these lawsuits have caused significant losses to investors.

The crypto exchange’s legal director says that if the regulations were clarified, “we will comply, and others will be able to comply in a way that is simply not possible today.”

However, Coinbase CEO Brian Armstrong and the board say they are confident the lawsuit will be dismissed, which would be another humiliation for Gary Glenser’s SEC.