The US SEC’s lack of guidance for the crypto companies created a new debate in the crypto sector among the crypto proponents.
On 11 Aug 2023, Coinbase Chief legal officer Paul Grewal took to X (formerly Twitter) and indirectly claimed that crypto companies are facing lawsuit actions because they’re seeking guidance to comply with laws.
Pro XRP lawyer John Deaton supported Coinbase legal officer’s point and said that it is complicated for the lawyers to explain “how to sell crypto tokens lawfully” because the SEC agency claims that if any lawyer will give a suggestion then that lawyer will violate Section 5 of the Securities Act.
Furthermore, Deaton said that if any company will disclose everything about partnership with other companies & also the details of token sales with full transparency then the SEC will use those details against the companies to initiate charges.
In short, Deaton claimed that the US SEC created a situation where the companies are not confident to run business with full transparency.
Deaton also dragged the matter of Sam Bankman-Fried (SBF), an infamous crypto entrepreneur who is under several federal & fraud charges, that how he succeeded to meet the SEC chairman Gary Gensler two times, while Coinbase CEO Brian Armstrong failed to secure any meeting.
Coinbase vs SEC
In early June of this year, the US SEC sued the Coinbase exchange over providing unregistered securities offerings and running an unregistered national securities exchange.
In the present time, Coinbase & SEC are fighting against each other in court. The Coinbase representative lawyers are trying their best to provide all the evidence & facts to prove that the Coinbase exchange always followed rules & regulations to comply with traditional financial rules.
On 11 Aug, US Senator Cynthia Lummis from Wyoming filed an amicus brief to support Coinbase. Through the amicus brief, Lummis said that the SEC agency is trying to explain how the Crypto sector should be regulated, which is an unethical way of regulation.
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