Coinbase, a prominent cryptocurrency exchange, has accused the United States Securities and Exchange Commission (SEC) of deliberately stifling the growth of the digital assets industry through its overbearing regulations. In a recent filing with the U.S. Court of Appeals, Coinbase expressed its frustration with the SEC's refusal to establish clear and fair guidelines for the crypto market.

SEC's Intentions

Coinbase believes that the SEC is determined to "strangle" the crypto industry, as evidenced by its enforcement-oriented approach. The exchange argues that the agency is unwilling to engage in constructive dialogue to establish a regulatory framework that is both practical and fair.

SEC's Position

The SEC, on the other hand, maintains that its rules are workable and that it has taken legal action against several firms for violating them. Coinbase, however, claims that the SEC has no duty to ensure compliance with its rules and that the agency believes its rules are sufficient because it has already taken legal action against several firms.

Other SEC Commissioners Share Coinbase's Concerns

Coinbase is not alone in its concerns about the SEC's approach. One of the most vocal pro-crypto SEC commissioners, Hester Pierce, has also expressed her concerns about the SEC's hindrance of the digital assets industry. Pierce has proposed a cross-border sandbox program between U.S. and U.K. blockchain firms experimenting with tokenized securities.

SEC's Mitigation Efforts

The SEC has attempted to downplay its heavy-handed approach by claiming that only a small segment of the industry may experience compliance difficulties. Coinbase, however, disputes this assertion, stating that the SEC's rules pose challenges for a broader range of market participants.

Coinbase's Legal Battle

Coinbase has sought to have its case dismissed, but the SEC has consistently opposed their attempts. Despite optimism from the crypto industry and legal experts that Coinbase would have the case dismissed, it was unsuccessful.

Key Points

1. Coinbase believes the SEC is determined to "strangle" the crypto industry.

2. The SEC's enforcement-oriented approach is seen as a hindrance to the growth of the digital assets industry.

3. Coinbase claims the SEC has no duty to ensure compliance with its rules.

4. Other SEC commissioners share Coinbase's concerns about the SEC's approach.

4. The SEC has attempted to downplay its heavy-handed approach by claiming only a small segment of the industry may experience compliance difficulties.