Coinbase, led by Brian Armstrong, has once again appealed to the US legal system, urging the Securities and Exchange Commission (SEC) to provide clear regulatory guidelines for the cryptocurrency space. Responding to the SEC's filing on November 21, Coinbase's legal team contends that the recent enforcement action against Kraken illustrates the SEC's deliberate delay in offering transparent guidance to the crypto industry.
Coinbase argues that the SEC's reluctance to share information on crypto regulations and its commitment to submitting status reports by December 15, 2023, indicate a lack of readiness to provide necessary clarity for crypto firms. Led by Paul Grewal, the legal team insists that only a direct order from the Courts of Appeals can compel the SEC to take decisive action, dismissing the recent SEC filing as a mere delay tactic. Citing the SEC's enforcement action against Kraken, Coinbase's legal team sees it as proof that the regulator's calls for more time are a facade, urging the court to reject this approach.
Despite ongoing tensions with the SEC, Coinbase emphasizes the importance of regulatory clarity to prevent friction between the industry and the US government. In a previous petition to the SEC in July 2022, Coinbase sought a regulatory framework for digital asset securities to encourage innovation in the US crypto space. Despite concerns about potential hindrances to innovation due to the SEC's actions, Coinbase stresses the need for regulatory clarity to maintain the US's competitive edge globally.
