Is Ripple-Like Lawsuit Looming, Coinbase CEO Vows to Seek Legal Redress With SEC

The United States Securities and Exchange Commission (SEC) may need to gear up for another major court battle Coinbase Exchange, the latest crypto trading platform it sued, is likely not going down without a fight. Taking to His official Twitter handle to comment on the lawsuit filed by the markets regulator, CEO, Brian Armstrong gave an indication that he is willing to seek a legal redress on this matter.

“Regarding the SEC complaint against us today, we’re proud to represent the industry in court to finally get some clarity around crypto rules,” his opening statement in the longform Tweet reads.

Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules.

Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to "come in and…

— Brian Armstrong 🛡️ (@brian_armstrong) June 6, 2023

Brian Armstrong who has been very vocal about the need for a comprehensive regulation in the industry shared some salient reminders that can help his exchange counter the SEC’s stance that it helped in listing and trading of investment securities.

According to Armstrong, the SEC reviewed its application to become a publicly traded company back in 2021. A proof that its business models would have at the very least been scrutinized at the time. The Coinbase CEO also noted that there is no path to “come in and register,” as SEC often alleges it had extended an invitation to players in the industry.

Based on this, the Coinbase CEO said it has tried to engage with the regulator repeatedly and that it does not list securities. While it said it receives a large number of applications, only a few assets are listed on its platform.

Coinbase CEO on the Regulatory Discrepancies

Armstrong also cites the broad confusion between the top market regulators – SEC and CFTC – in defining as a matter of fact what constitutes securities or not. This confusion has permeated the market with one asset receiving different designations from both regulators. Armstrong posited that the differences in opinion is why the US Congress is stepping in to remedy the situation.

The Coinbase boss called out the SEC for its regulation by enforcement tactics instead of providing a clear rulebook for the emerging industry. While the trading platform considers the next steps to take, it has revealed earlier that it will proceed with business as usual in the short term.