Coinbase Sues the SEC, Seeking Regulatory Clarity For the Crypto Industry (theblock.co) 37
The U.S. cryptocurrency exchange Coinbase is suing the Securities and Exchange Commission, seeking to force the commission to respond to a petition (PDF) requesting them to draft and approve a rule specific to digital assets. "The lawsuit aims to force the agency to provide a yes or no to Coinbase's ask," adds The Block. From the report: Since that request by Coinbase, the SEC has reopened custody and exchange rules to explicitly say that they apply to digital assets, but has not engaged in drafting a rule specific to digital assets. The agency has also engaged in several enforcement actions against crypto companies, including an investigation into Coinbase.
"From the SEC's public statements and enforcement activity in the crypto industry, it seems like the SEC has already made up its mind to deny our petition. But they haven't told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision," the company's chief legal officer Paul Grewal wrote in a blog post about the filing. The suit filed by Coinbase is a writ of mandamus, a type of lawsuit for "exceptional circumstances" in which a court can force federal officials to act. If the SEC declines to make a new rule, Coinbase can file another lawsuit in an attempt to make a federal court force them to do so.
"From the SEC's public statements and enforcement activity in the crypto industry, it seems like the SEC has already made up its mind to deny our petition. But they haven't told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision," the company's chief legal officer Paul Grewal wrote in a blog post about the filing. The suit filed by Coinbase is a writ of mandamus, a type of lawsuit for "exceptional circumstances" in which a court can force federal officials to act. If the SEC declines to make a new rule, Coinbase can file another lawsuit in an attempt to make a federal court force them to do so.
WTF (Score:1, Troll)
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so Coinbase wants to do some money laundering?
Just wait the CEO to find out what an FPMIAP is
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Coinbase is hoping to get a decision that's favorable before the SEC is fully ready to ramp up enforcement against them. That said this seems like one of those, be careful what you wish for you might just get it, situations. I think it's more likely that coinbase is miscalculating here.
Then again there's absolutely no legitimate use for cryptocurrencies. They're heavily centralized around a handful of exchanges
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Are you kidding? COIN was served a wells notice from the SEC. As a public company, the wells notice has impacted its prospects and ability to do business. COIN has done everything on the up and up, and the SEC has been a regulatory predator. Do some reading, and you'll see that Gensler is on the wrong side of this and has been for a long time.
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They are a public company, and its activities were all detailed in its prospectus pre-IPO. Everything they've done has been with regulations in mind. They review every single project they list to ensure they are compliant. ... they aren't some fly-by-night exchange. you'll see, the SEC isn't going to win this.
Re:WTF (Score:5, Insightful)
So, you're claiming that everything Coinbase has done is with regulations in mind and they've reviewed project to ensure it's compliant... with the regulations that don't exist which Coinbase is suing the SEC over because they want regulatory clarity?
If you could express the mental contortions in your thought process in a physical form, you'd be walking away with every gymnastics medal given at the Olympics.
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The "regulations" keep changing in contradictory ways.
Well, in aggressive ways to harm the industry.
The case history is ample and clear.
Janvo is a scammer (Score:1)
Crypto scammers gonna crypto scam. Wassup crypto bruh?
I want the SEC to regulate sports betting! (Score:2)
I want the SEC to regulate sports betting! And powdered toast. Can I sue? Yes.
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Seems to be the thing these days. When you know they are coming after you for your wrong doing, accuse them of doing some meaningless wrong doing first.
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If the crypto industry is regulated, that benefits them in at least two ways:
First, it lends them credibility. They MUST be a legitimate industry, if they're regulated! My "investments" must be safe with them if they're regulated, right?
Second, deniability. "It's now OUR fault that the whole system came crashing down - we followed all the rules! It's the regulators who are to blame for not stopping us!" (Because we all know this is exactly the argument other financial industries use...)
So of course they wan
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Third, it helps build a barrier to entry. Coinbase is nothing special - they have no secret sauce. Anyone can (and seemingly have) set up a crypto exchange. Having regulations, permits, licenses, etc. will make it harder for any newcomers to come along take away market share.
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You have no idea what you're talking about. Gensler's own words state that he sees no need for further regulation. They (SEC) are playing predator and trying to use existing regulations to cannibalize the industry players as they see fit. 'Artificial scarcity that people could bet on' - What are you even discussing? Cryptographically secure, distributed ledger technology is a game-changing solution for many real-world problems. We're talking about introducing decentralized finance to the unbanked, and you'r
Re:That will not end well for COIN (Score:1)
Your lack of understanding is reflected in the quality of your questions. I'll entertain.
Real-world problems that the technology solves:
1) Fast, secure peer-to-peer payment methods that are not subject to the same fees as traditional payment methods
2) Financial Inclusion is a big one - do you know how many unbanked people exist worldwide? Get out of your bubble. Over a billion people on this planet do not have access to a bank account, never mind a loan.
3) Identity Verification - A decentralized method of v
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None of your points are correct or even relevant to what I wrote. You aren't worth responding to. Good luck in life.
Crypto has several real world uses! (Score:1)
Real-world problems that the technology solves:
1) Scamming idiots out of their money and enriching psychopaths.
2) Buying pedoporn, illegal guns, and illegal drugs online.
3) Laundering money for criminal organizations and rogue states.
4) Rich retirements for scammers.
Supply chain management is done with this thing called a database. Distributing the database makes it slower and costlier, but the good news is... Oh, there is no good news.
Anti-counterfeiting technology? Dafuq! You mean NFTs? Another scam.
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Luddites in my slashdot? Say it ain't so!
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It's incredible.
Crypto is here to stay (Score:2)
It saddens me how much /. has deteriorated over the years. Few of you know what you are talking about. The hate on for crypto is ubiquitous and palpable, with no arguments of substance. Anyone involved in crypto, involved on the regulatory side, can see plain as day that the SEC has been playing both sides to their advantage. They are at the point where they are nothing but a regulatory predator, looking for the next entity they can fine into oblivion - mandate be damned. They don't protect consumers. I don
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Crypto was somewhat interesting back in the early days. Once it became clear that nobody actually wants a currency and everyone is just looking to have a modern equivalent of the tulip mania, it became clear that the field is completely useless. Burn it all down, nothing will be lost.
Ultimately it all revolves in a bunch of people having a world-wide bet that they bought their tokens early and that they can profitably resell them to some patsy and cash out. There's not any more utility to than than a casino
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Crypto was a scam from the get go. It was always a scam and nothing more. The scammers are laughing their way to the bank.
Careful what you wish for (Score:1)
The SEC might just well regulate crypto exchanges into oblivion and frankly it's nothing less than they deserve.
But it's ON A COMPUTER! (Score:1)
They don't want to follow the regulations that the SEC already have. They want special rules for "digital assets".
What is the exact rationale for that? WHY is it different because it's "on a computer"?