Coinbase CEO Brian Armstrong urges the following U.S. Securities and Trade Fee (SEC) chairman to dismiss the company's “frivolous” lawsuits in opposition to crypto firms and publicly inform Individuals. I requested him to apologize.

In an Oct. 29 submit on X, Armstrong highlighted the inconsistencies within the SEC's method to the crypto sector, arguing that it has led to pointless lawsuits in opposition to firms like Coinbase. He acknowledged that whereas an apology won’t undo the injury, it may very well be a step towards restoring public belief within the SEC.

He stated:

“It will not unjustify the hurt performed to the nation, however it will start the method of restoring confidence within the SEC as an establishment.”

Conflicting SEC positions

Below Gary Gensler's management, the SEC has issued conflicting statements on key points, together with whether or not digital belongings qualify as securities and the company's regulatory authority over digital asset exchanges.

Armstrong famous that in 2018, the SEC acknowledged that digital belongings aren’t securities, however in 2021 this contradicted itself by classifying digital belongings as funding contracts. By 2024, the company had reversed its place once more, stating that digital belongings have been “not securities.”

The SEC additionally overturned Bitcoin's standing. Initially thought of non-security in 2023, the SEC indicated uncertainty and in the end reaffirmed the non-security classification in 2024.

Armstrong additional expressed issues concerning the SEC's authority over crypto exchanges. In 2021, the SEC claimed that there is no such thing as a regulatory physique for these exchanges. However a 12 months later, it asserted that it retained parliamentary authority to supervise digital asset exchanges.

The SEC's stance on readability in securities legal guidelines has additionally been inconsistent. The company had beforehand argued that there was uncertainty about digital belongings as securities, however in 2023 it maintained that the regulatory framework established over the previous 90 years is obvious.

These conflicting positions are inflicting confusion throughout the trade and rising requires regulatory transparency. Many within the crypto trade have known as for SEC Chairman Gensler's removing, and Republican presidential candidate Donald Trump has vowed to pursue this if elected.

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