The legal battle between the SEC and Coinbase has just begun. It has become an event closely followed by the cryptocurrency industry. Obviously, it is emphasized that the process will not be short. However, no matter how long the process is, it is certain that important lessons will be learned from the decision. Now a former SEC official has made statements on the subject. cryptocoin.com Let’s take a look at the details of the news.
SEC and Coinbase war
John Reed Stark, former Chief of the SEC Internet Enforcement Office. Evaluates the current argument of the US public exchange Coinbase Global Inc. Stark finds Coinbase’s defense against the market regulator faulty. According to John Reed, the trading platform’s argument that the regulator has approved an Initial Public Offering (IPO) in 2021 and therefore has a good knowledge of its business is flawed.
John Reed points to the SEC’s role when it comes to filing for an IPO. Accordingly, the applicant company says it is to review whether it has made the correct disclosures. With each statement, the SEC issues a bold disclaimer that legally withdraws from commission the exact same claims the exchange plans to use as a cover, according to the former SEC official. John Reed posted a sample of this statement for emphasis. Here is the description:
“The Securities and Exchange Commission and state securities regulators do not approve these securities as they did before. It has not determined whether the prospectus or the appendix to this prospectus is accurate or complete. Any statement to the contrary is a criminal offence.”
Reed points to the role of the SEC here. Accordingly, he states that it is to ensure that investors make the right decisions while making their investment decisions. It also highlights Coinbase’s claim to be aware of the commission’s business. He adds that this will not help his defense during the trial.
Coinbase has a long way to go
Currently, Coinbase as an exchange has a long way to go to trend as it has two pending lawsuits with the US SEC. First, the trading platform sued the commission, led by Gary Gensler, for failing to provide regulatory clarity as it had separately requested.
Obviously the second most important case is the charges on the trading platform to support trading of unregistered crypto securities such as Cardano (ADA), Solana (SOL), Filecoin (FIL), and Polygon (MATIC). The legal battle will go a long way for the trading platform, judging by the legal battle between Ripple Labs and market regulators. As a result, we can easily say that the industry itself will be directly affected. Let’s see how the situation will turn out?
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