Coinbase Short Response Highlights SEC’s Aggressive Rules Against Crypto

Key Points:

• Coinbase urges the SEC to swiftly respond to its call for crypto regulations.
• Coinbase short response referenced the SEC’s Nov. 20 enforcement action against Kraken.
• Brian Armstrong sees recent SEC actions as validation for the exchange’s compliance-focused strategy since 2012.

In a recent filing to the U.S. Court of Appeals for the Third Circuit, cryptocurrency exchange Coinbase pressed the Securities and Exchange Commission (SEC) for a prompt reply to its petition seeking rules on crypto regulation.

Coinbase Short Response Urges SEC Action Amidst Regulatory Concerns

The Coinbase short response underscored the urgency by referencing the SEC’s recent enforcement action against Kraken, alleging fund commingling and failure to register.

The exchange initially submitted its petition in July 2022, urging the SEC to establish rules governing securities traded through digital means. Despite the SEC’s pledge to provide a status report by December 15, Coinbase expressed concerns over potential delays.

Coinbase CEO Brian Armstrong, in a Nov. 21 social media statement, emphasized the exchange’s compliance-centric strategy since its 2012 inception, distinguishing it from competitors like Binance. Armstrong sees the SEC’s recent actions as validation of Coinbase’s adherence to regulations.

Industry Calls for Clarity in Crypto Regulations

Cameron Winklevoss, a prominent figure in the crypto space, echoed the need for clear regulatory guidelines to navigate the complex U.S. cryptocurrency landscape.

The Coinbase short response referenced the SEC’s Nov. 20 enforcement action against Kraken, highlighting allegations of fund commingling and unregistered securities activities. Notably, the filing did not touch upon Binance’s Nov. 21 settlement, a separate issue from its ongoing case with the SEC.

Amidst these developments, Armstrong seized the moment to call upon U.S. authorities to establish a conducive regulatory environment for the burgeoning industry.

In a parallel development, Binance, the world’s largest crypto exchange, agreed to a substantial $4 billion settlement with U.S. authorities on Nov. 20, with its founder resigning after pleading guilty to money laundering charges.

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