Breaking: Coinbase Challenges SEC’s Expanding Exchange Definition
Highlights
- The US biggest trading platform just challenged the SEC again
- This time, the claims is hinged on the blanket definition given to exchanges
- The exchange has series of legal and policy disagreements with the regulator
Crypto trading giant Coinbase Exchange has challenged a recent proposition by the United States Securities and Exchange Commission (SEC) to expand the definition of exchanges. Taking to the X social media platform, the trading firm’s Chief Legal Officer (CLO) Paul Grewal pointed out that it has lodged an official opposition to the new blanket definition.
Coinbase and SEC: Unending Regulatory Disparity
Is it not uncommon for the exchange and the markets regulator to go toe-to-toe on regulatory matters. Notably, Paul Grewal pointed out that the commission’s inclusion of Decentralized Exchanges (DEXs) in the definition did not come with critical analysis. The exchange CLO believes that the regulator did not collect basic information nor did it conduct any economic analysis about how the proposal would affect DEXs.
As a result, the definition found it basis on irrational assumptions, in Grewal’s opinion.
Today @coinbase submitted another set of concerns with @SECgov over the agency’s proposal to expand the definition of “exchange.” In short, the SEC’s proposal lacks critical analysis, rests on irrational assumptions, fails to show that there is any problem in need of regulation,…
— paulgrewal.eth (@iampaulgrewal) August 12, 2024
Grewal is seeking the withdrawal of the proposal. While the American crypto company is open to a rewritten version of the proposal, it noted that extending the rule to DEXes will have severe consequences on the crypto community. In the long run, it could eventually crippled innovation in the DEX niche.
This is one of the many direct regulatory or policy contention between both entities. Recently, the exchange and VanEck Executives blamed the regulator over increasing borrowing costs associated with Bitcoin ETFs.
Crypto Community Expects Trump to End SEC Tyranny
It is worthy of note that the crypto industry is running out of patience with the Gary Gensler-led commission. Crypto community members are intensely anticipating the upcoming United States elections. This is partly because Republican Presidential candidate Donald Trump plans to oust Gary Gensler if he wins the election.
There is no certainty that Trump would win the 2024 presidential elections. Recently, pro-Bitcoin Anthony Scaramucci predicted Trump will quit the presidential race. He described the former leader as a “frightened little man” who would retreat once his prospects dimmed.
For now, the 78-year-old politician has sustained his campaign momentum. Trump has returned to the X App and released a new ad alongside.
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