The cryptocurrency exchange Coinbase and the entire industry are celebrating an agreement with the US Securities and Exchange Commission (SEC) to dismiss the litigation without fines or business changes.
Coinbase Engaged in Litigation with the SEC in 2023
This is a significant win for Coinbase, especially since many initially doubted Brian Armstrong's decision to engage in litigation with the SEC. Despite concerns about the lengthy process and high costs, justice prevailed.
Armstrong’s Arguments Against the SEC
1. The SEC Exceeded Authority: Armstrong claimed that the SEC exceeded its authority by asking the exchange to delist assets that were not securities. 2. Threats to the Industry: Armstrong also noted that giving in to the SEC would have killed the crypto industry in the US. 3. Defending Rights: He emphasized the importance of standing up for customer and industry rights, regardless of the chances of success.
Importance of Accountability on Both Sides
Armstrong noted that accountability should be mutual. He thanked the Trump administration for its crypto-friendly policies and expressed hope for SEC reform under new leadership, including Hester Peirce and Elon Musk.
The agreement between Coinbase and the SEC underscores the importance of defending the rights of the crypto industry and may be a turning point for future regulation.
